Home Commodities Gold Holds Close to Record Highs Ahead of Key U.S. Economic Data

Gold Holds Close to Record Highs Ahead of Key U.S. Economic Data

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Gold Prices Stay Near Record Highs Ahead of U.S. Economic Data

Gold prices moved higher on Thursday, holding close to record levels as geopolitical tensions and expectations of lower Federal Reserve interest rates boosted demand.

At 08:15 ET (12:15 GMT), spot gold rose 0.4% to $3,750.52 an ounce, after retreating from Tuesday’s all-time high of $3,790.82. U.S. gold futures for December gained 0.3% to $3,780.50 an ounce.

The metal had slipped 0.7% on Wednesday as a stronger U.S. dollar made gold more expensive for international buyers.

Investors Eye U.S. Economic Data

Markets are now focused on upcoming U.S. economic reports, which may offer clues on the Fed’s policy path after its first rate cut of the year earlier this month.

  • Weekly jobless claims, expected Thursday, are forecast around 230,000.
  • A second estimate of Q2 GDP will also be released the same day.
  • On Friday, the core PCE price index for August is expected to show a 2.7% annual increase, still above the Fed’s 2% target.

Lower interest rates generally make gold more appealing, as they reduce the opportunity cost of holding non-yielding assets like bullion.

Geopolitical Tensions Support Gold’s Haven Appeal

Beyond rate expectations, gold has gained from its role as a safe-haven asset. Investors remain cautious amid ongoing conflicts in Ukraine and the Middle East, persistent inflation, and U.S. political uncertainty.

Copper, Silver, and Platinum Prices Rise

Silver futures climbed 2.1% to $45.13 per ounce, while platinum gained 2.9% to $1,526.25 per ounce.

On the base metals side, copper futures rose after Freeport-McMoRan declared force majeure at its Grasberg mine in Indonesia, one of the world’s largest copper operations.

  • LME copper increased 0.1% to $10,373.50 a ton.
  • U.S. copper futures added 0.6% to $4.8420 a pound.

The mine, which supplies about 3% of global copper output, has been shut for nearly three weeks following a fatal mudslide. Analysts at ING noted the disruption highlights the significant impact on both global copper supply and Freeport’s gold production.

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