Gold prices remained largely unchanged in Asian trading on Thursday after retreating from record levels, with a stronger U.S. dollar and cautious signals from the Federal Reserve tempering demand for the precious metal.
Spot gold last traded up 0.2% at $3,713.42 per ounce by 03:01 ET (07:01 GMT), following a pullback from Tuesday’s all-time high of $3,790.82/oz. U.S. December Gold Futures inched up 0.1% to $3,773.02. The metal had declined 0.7% on Wednesday as the dollar strengthened overnight, making gold more expensive for holders of other currencies.
Gold eases before U.S. data
Fed Chair Jerome Powell said on Tuesday there was “no risk-free path” for policy, warning of the risks of cutting too quickly or too slowly. San Francisco Fed President Mary Daly and other officials reinforced the cautious stance, emphasizing that any easing would depend on upcoming economic data.
Investors are watching a series of U.S. reports this week that are expected to offer clearer guidance on whether the Fed will continue with rate reductions later this year. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as bullion, enhancing gold’s appeal.
Weekly jobless claims, due Thursday, are expected to be around 230,000. The government will also release its second estimate of Q2 GDP, while the August core Personal Consumption Expenditures (PCE) price index, due Friday, is forecast to increase about 2.7% year-on-year, remaining above the Fed’s 2% target.
Bullion has repeatedly hit new highs in recent months, fueled by expectations of monetary easing, geopolitical tensions, and substantial central bank buying.
Other metals remain subdued
Other precious and industrial metals traded in narrow ranges amid a cautious market. Silver Futures rose 0.2% to $44.29 per ounce, while Platinum Futures remained steady at $1,484.35/oz.
Copper markets saw mixed moves: London Metal Exchange Copper fell 0.5% to $10,313.65 per ton, whereas U.S. Copper Futures gained 0.4% to $4.85 per pound.
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