Gold prices experienced a modest increase on Thursday, as market participants evaluated remarks made by U.S. Federal Reserve Chairman Kevin Warsh regarding inflation management, following the central bank’s decision to maintain interest rates at its most recent policy meeting. Spot gold increased by 0.4% to $4,080.38 per ounce, as of 0103. U.S. gold futures for August delivery increased by 1.1%, reaching a price of $4,078. A divided Federal Reserve left interest rates unchanged on Wednesday, while Warsh reaffirmed the U.S. central bank’s commitment to bringing inflation under control, leaving markets uncertain about its next policy move.

Markets currently reflect a 57% probability of a rate increase in September, a decrease from approximately 81% before the policy announcement, as indicated by CME Group’s FedWatch tool. Investors are anticipating the release of June’s Personal Consumption Expenditures data, scheduled for later today, as they seek additional insights into the Federal Reserve’s policy trajectory. The Bank of England and the Bank of Japan are anticipated to maintain their current interest rates this week, while expressing caution regarding inflationary pressures associated with the conflict in the Middle East.

A drone struck a U.S.-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, according to an initial assessment by British maritime security firm Ambrey on Wednesday. U.S. President Donald Trump pledged to retaliate against Iran for an overnight attack, indicating that the Middle East conflict seems to be broadening beyond its primary fronts. Spot silver increased by 1% to $58.20 per ounce, while platinum saw a modest rise of 0.3% to $1,616.84. Palladium experienced a more significant uptick, climbing 1.9% to $1,270.50.