Gold is stable amid expectations of stopping US interest rate hikes

Gold prices stabilized on Thursday near their lowest levels in three weeks, which they touched in the last session after the release of US inflation data, which reinforced expectations that the Federal Reserve will stop raising interest rates next week.

By 0747 GMT, spot gold prices stabilized at $1,905.49 per ounce, hovering around their lowest levels since August 25, which they reached on Wednesday at $1,905.10. While US gold futures fell 0.3 percent to $1,926.70.

The dollar index and 10-year Treasury bond yields fell after the Labor Department report showed on Wednesday that the annual increase in inflation was the smallest in nearly two years, indicating that the Federal Reserve will keep interest rates unchanged next week.

However, US consumer prices rose in August at the largest pace in 14 months as the cost of gasoline rose.

The European Central Bank is also scheduled to announce its interest rate decision later on Thursday.

As for other precious metals, silver fell in spot transactions by 1.5 percent to $22.49 per ounce. Platinum lost 0.1 percent to $898.94, and palladium fell 0.52 percent to $1,252.53.