(CTN News) – Gold prices remained stable on Thursday, staying close to a nearly seven-month high, as investors eagerly anticipated the release of key inflation data to determine if the US would implement interest rate cuts sooner than anticipated.
As of 0351 GMT, spot gold was unchanged at $2,044.79 per ounce, having reached its highest level since May 5 on Wednesday. It was also on track for its second consecutive monthly gain.
On Thursday, bullion traded within a narrow range of approximately $4. Meanwhile, US gold futures for December delivery experienced a slight decline of 0.2% to $2,045.30 per ounce.
According to IG Gold market strategist Yeap Jun Rong, “Prices appear to be taking a brief pause in today’s session, with some cautiousness ahead of the release of US personal consumption expenditure data – the Federal Reserve’s preferred inflation indicator – at 1330 GMT.”
In spite of the unexpected positive performance of the US 3Q GDP, the market’s expectations for a rate cut remain unchanged. This is due to the fact that investors are paying more attention to recent comments made by Federal Reserve officials.
These officials have expressed concerns about slowing growth and easing inflation, which has led to a decrease in yields on 10-year Treasury notes.
As a result, traders have increased their predictions for a rate cut by the US central bank, with the probability rising from 80% in May to a 50% chance in Gold March, according to CME’s FedWatch Tool.
The dollar index hovered around three-month lows, resulting in a decrease in the price of gold for holders of other currencies.
November is expected to be the worst month for the dollar index in a year. Additionally, investors will be paying attention to remarks from Fed Chair Jerome Powell during his scheduled speech on Friday. Spot silver experienced a slight decline of 0.1%, with a value of $24.98 per ounce.
Meanwhile, platinum saw a 0.2% increase, reaching $933.52, and palladium remained steady at $1,027.45 per ounce.