Gold prices remained stable on Thursday as investors anticipated crucial U.S. economic data that could provide further clarity on Federal Reserve policy, with a marginally weaker dollar offering some support to bullion. Spot gold remained unchanged at $3,734.04 per ounce, as of 0202. U.S. gold futures for December delivery remained stable at $3,765.20. The U.S. dollar index declined by 0.1%, resulting in a decrease in the cost of dollar-denominated bullion for international purchasers.

Mary Daly, President of the San Francisco Federal Reserve Bank, expressed her complete support on Wednesday for the Fed’s decision to lower its policy rate last week and anticipates additional cuts in the future. “The move may reflect expectations that the Fed intends to run the U.S. economy hot as it rebalances its focus to the labour market,” stated Ilya Spivak. Initial support levels align at approximately $3,700 and $3,600. Breaking resistance at the recent peak near $3,790 could reveal levels between $3,870 and $3,875, subsequently leading to $4,000. On Tuesday, Fed Chair Jerome Powell underscored the necessity of balancing inflation risks with a deteriorating jobs market in forthcoming policy decisions. Investors are anticipating the release of the personal consumption expenditures price index report on Friday, which serves as the Federal Reserve’s favored gauge of inflation, for additional insights regarding interest rate direction.

The report is anticipated to indicate a month-on-month increase of 0.3% for August, alongside a year-on-year rise of 2.7%. “I don’t believe the inflation data will have a substantial effect on gold unless it is exceptionally elevated,” stated Brian Lan. “From a quantitative perspective, the long-term outlook for the market remains decidedly bullish.” The forthcoming weekly U.S. jobless claims data, scheduled for release later on Thursday, is anticipated to offer valuable insights into the prevailing conditions of the labor market. Market participants widely anticipate two additional 25-basis-point reductions in the Federal Reserve’s interest rates this year, scheduled for October and December.

Safe-haven bullion, which typically flourishes in a low interest rate environment, reached a record high of $3,790.82 on Tuesday. Spot silver experienced a decline of 0.2%, settling at $43.83 per ounce, while platinum decreased by 0.1% to $1,470.66. In contrast, palladium saw a slight increase of 0.1%, reaching $1,210.96.