Market Overview

Gold spot price was little changed on Thursday, with XAU/USD slipping 0.1% to $4,398.53 per ounce at 20:43 ET (00:43 GMT). Gold futures fell 0.4% to $4,442.00, while silver (XAG/USD) remained steady at $67.28 per ounce and platinum (XPT/USD) dropped 0.6% to $1,888.23. The U.S. Dollar Index held near 98.81.

Economic Data Focus

Markets focused on the upcoming U.S. producer price index (PPI) release on Thursday and the consumer price index (CPI) on Friday, both seen as key inputs for the Federal Reserve’s policy meeting next week. Swap markets priced roughly a 65% probability that the Fed will raise rates at that meeting.

Yield and Geopolitical Pressures

Higher 10‑year Treasury yields added pressure to gold after the Treasury’s latest plan to purchase up to $6 billion of longer‑dated debt failed to calm the bond market. Elevated yields can weigh on gold because the metal yields no interest. Concurrently, renewed tensions in the Middle East, now in the seventh month of conflict, and Iran’s warning of intensified actions if the United States continues attacks, contributed to a risk‑off environment. Oil prices added to the backdrop, with Brent crude climbing to $100 per barrel for the first time since July.

Analyst Commentary

Tony Sycamore, senior market analyst at IG, noted that gold finished higher overnight around $4,402, supported by a weaker dollar despite sharply rising U.S. bond yields. He highlighted that gold remains well below its 200‑day moving average of approximately $4,537, and a reclaim of that level would be needed to confirm the end of the recent pullback from the $4,697 high and a resumption of the broader uptrend.

Investor Demand

The World Gold Council reported that global gold‑backed exchange‑traded funds (ETFs) attracted $18 billion of inflows in August, the second‑largest monthly inflow on record. Total holdings rose by 121 tonnes to a record 4,189 tonnes, and assets under management increased 16% to $615 billion. North American funds logged their third‑largest monthly inflow, while European‑listed funds posted their largest ever monthly inflow.