Gold is near a one-month high ahead of US inflation data

Gold prices rose to near one-month highs on Thursday as a new batch of weak US data reinforced expectations for a pause in interest rate hikes this year, although inflation readings released later on Thursday may revise those expectations.

By 0331 GMT, spot gold rose 0.2 percent to $1,945.40 per ounce. US gold futures settled at $1,972.40.

Despite gold’s gains this week, it is heading for a monthly decline of about one percent, as the dollar looks forward to its first monthly rise in three months and US Treasury bond yields are preparing for their fourth monthly rise after reaching 2007 levels last week.

Data released this week showed the US economy grew at a slightly slower pace than initially thought during the second quarter of the year, while the number of job openings fell to the lowest level in nearly two and a half years in July as the labor market gradually slowed.

At the same time, an official survey showed manufacturing activity contracted for the fifth straight month in August in China, the largest consumer of gold.

As for other precious metals, silver fell in spot transactions by 0.3 percent to $24.59 per ounce, after rising to its highest level in more than a month on Wednesday.

Platinum settled at $974.13, and is heading for its second consecutive monthly gain. Palladium rose 0.9 percent to $1,232.98, but is on track to record a monthly decline of four percent.