Gold locked in a narrow range before US data release

Gold prices fluctuated in a narrow range on Thursday as investors turned their focus to US economic data that could provide additional clues as to when the Federal Reserve (the US central bank) might implement interest rate cuts.

By 0456 GMT, spot gold rose 0.2% to $2,314.26 per ounce. US gold futures fell 0.1% to $2,321.

According to Reuters, the weekly US unemployment claims data is scheduled to be released at 1230 GMT, and the consumer confidence index reading from the University of Michigan is scheduled for Friday. Consumer price index data will also be released next week.

“Despite market expectations of a cut in interest rates in September, gold traders are cautious about making big moves,” said Ajay Kedia, director of Kedia Commodities in Mumbai. “If the US inflation report comes in higher than expected, prices could fall to $2,290.”

According to CME’s Fed Watch tool, traders currently expect approximately 66% of US interest rates to be cut in September.

Lower interest rates reduce the opportunity cost of holding gold.

As for other precious metals, silver rose in spot transactions 0.7% to $27.53, platinum rose 0.8% to $982.10, while palladium increased 0.5% to $956.13.