Gold edges higher on weaker greenback, US inflation data in focus

[BENGALURU] Gold inched higher on Thursday (Sep 10), helped by a softer US dollar, while market participants awaited key US inflation data that could shape the US Federal Reserve’s interest rate path.

Spot gold was up 0.3 per cent at US$4,412.84 per ounce, as at 0234 GMT. US gold futures for December delivery fell 0.1 per cent to US$4,457.10.

“For now, the geopolitical developments in the Persian Gulf are of secondary importance to gold. Gold instead is teeing off on a weaker US dollar, which notably is not moving up despite the fact that US rates are going higher,” Marex analyst Edward Meir said.

The US dollar remained subdued, making greenback-priced metals less expensive for holders of other currencies.

The US producer price index data is due at 1230 GMT, and consumer inflation figures are scheduled for release on Friday.

The Fed will hold its interest rate steady at its Sep 15 to 16 meeting and for the rest of 2026, again defying market expectations for a series of hikes, according to a majority of economists in a Reuters poll.

The CME FedWatch Tool showed markets pricing in a 60 per cent chance of a US rate increase in September. Higher rates generally make non-yielding assets less attractive to investors.

Gold is supported “as US fiscal pressures continue to undermine confidence in the long-term value of government debt and the currency used to finance it”, Daniel Hynes, senior commodities strategist at ANZ, said in a note.

In August, total US debt topped US$40 trillion for the first time, drawing fresh warnings that a fiscal crisis is brewing.

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On the geopolitical front, Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers, in the biggest wave of attacks on shipping by both sides since the start of the six-month-old war.

Among other metals, spot silver rose 0.2 per cent to US$67.42 per ounce, platinum fell 0.6 per cent to US$1,885.02 and palladium gained 0.2 per cent to US$1,355.50. REUTERS