By Daksh Grover
(Reuters) – Gold prices edged higher on Thursday after U.S. inflation data all but guaranteed a Federal Reserve rate cut next week, while traders awaited more U.S. economic data due later in the day.
Spot gold was up 0.1% at $2,514.39 per ounce, as of 0717 GMT. U.S. gold futures were steady at $2,542.90.
“Gold will likely break above $2,532. Only strong macroeconomic data, particularly from the U.S., indicating significant growth or economic improvement, could stop its upward trend,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
Traders will focus on the U.S. Producer Price Index (PPI) for August and the initial jobless claims print, scheduled for 1230 GMT, as well as consumer sentiment data on Friday.
Headline PPI month-over-month is expected at 0.1%, while the year-over-year reading is expected at 1.8%. This compares to prints of 0.1% and 2.2%, respectively, for July.
Meanwhile, data on Wednesday showed that U.S. consumer prices rose marginally in August, but underlying inflation showed some stickiness, which could result in the Fed delivering a smaller 25-basis-point cut at its upcoming meeting.
The consumer price index data showed no major inflation spikes, which is supporting gold prices to remain above $2,500 and suggesting no immediate changes to Fed policy, Wong said.
The Fed will likely start long-awaited rate cuts next week as they seek to reduce the odds of a recession even as stubbornly intact underlying price pressures put them off more aggressive action.
Zero-yield bullion tends to be a preferred investment amid lower interest rates and geopolitical turmoil.
Spot silver rose 0.23% to $28.75 per ounce and platinum gained 0.4% to $955.15.
Palladium climbed 0.8% to $1,016.52, its highest since July 8, following comments on export regulations from Russian President Vladimir Putin.
Putin said on Wednesday that Moscow should consider limiting exports of uranium, titanium and nickel in retaliation against the West.
(Reporting by Daksh Grover in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.