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Gold prices steadied in Asian trading on Thursday, pausing after slipping from record highs as a stronger U.S. dollar and cautious signals from Federal Reserve officials curbed momentum.
By 03:01 ET (07:01 GMT), spot gold rose 0.2% to $3,713.42 an ounce, while U.S. gold futures for December edged 0.1% higher to $3,773.02. The yellow metal had retreated 0.7% on Wednesday, as a dollar rebound made bullion costlier for non-U.S. buyers.
Fed Officials Strike Cautious Tone
Fed Chair Jerome Powell stressed on Tuesday that there was “no risk-free path” for monetary policy, warning against both premature and delayed easing. San Francisco Fed President Mary Daly echoed this view, underscoring that the pace of future cuts would be data-driven.
This tone has injected caution into gold markets, with investors awaiting further clarity from upcoming U.S. economic reports.
U.S. Data in Focus
Key U.S. indicators due later this week could determine bullion’s near-term direction.
- Weekly jobless claims (Thursday) are expected at around 230,000, offering insights into labor market health.
- Q2 GDP estimate (Thursday) will gauge the economy’s growth momentum.
- Core PCE price index (Friday), the Fed’s preferred inflation gauge, is forecast to rise 2.7% year-on-year in August, still above the 2% target.
These numbers will shape expectations for whether the Fed follows through with further cuts this year.
Gold Supported by Haven Demand
Despite the pullback, bullion remains close to last week’s record highs above $3,790/oz, underpinned by:
- Expectations of monetary easing
- Geopolitical uncertainty
- Strong central bank purchases
Lower rates reduce the opportunity cost of holding non-yielding gold, keeping investor appetite robust.
Other Metals Trade Mixed
Copper was mixed, with London futures slipping 0.5% to $10,313.65/ton, while U.S. futures gained 0.4% to $4.85/lb.
Silver futures edged 0.2% higher to $44.29/oz.
Platinum was steady at $1,484.35/oz.
