Gold prices firm, US inflation data in focus

Gold prices stabilized today, Thursday, and moved in a narrow range, hovering near the highest level in nearly seven months, with investors awaiting a key reading on inflation to determine whether interest rate cuts in the United States will come sooner than expected.

By 0543 GMT, gold in spot transactions fell 0.1 percent to $2,041.76 per ounce, after recording its highest levels since May 5 on Wednesday, and is heading for the second monthly gain in a row. The yellow metal was trading in a range of about five dollars on Thursday

According to Reuters, US gold futures for December delivery fell 0.2% to $2,042.40 an ounce.

Federal Reserve officials indicated this week the possibility of lowering interest rates in the coming months and expected growth to slow and inflation to continue to decline.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion

The dollar index fell close to its lowest levels in three months, making gold less expensive for holders of other currencies.

As for other precious metals, silver fell in spot transactions by 0.2% to $24.95 per ounce. Platinum fell 0.2% to $930.24. Palladium fell 0.4% to $1,023.42 per ounce.