Gold prices remained relatively stable during the early hours of trading in Asia on Thursday, as market participants braced for significant inflation data that may impact the trajectory of interest rates set by the U.S. central bank. Spot gold remained relatively stable at $4,396.69 per ounce, as of 0015. U.S. gold futures for December delivery experienced a decline of 0.4%, settling at $4,440.80. The U.S. producer price index data is scheduled for release at 1230, while consumer inflation figures are anticipated on Friday. The Federal Reserve will maintain its interest rate at its September 15-16 meeting and for the remainder of this year, once more contradicting market expectations for a series of hikes, as indicated by a majority of economists in a poll.

The CME FedWatch Tool indicates that markets are assigning a 60% probability of a U.S. rate increase this month. Higher rates generally diminish the appeal of non-yielding assets to investors. The European Central Bank appears poised to increase interest rates on Thursday for the second occasion this year, aiming to mitigate an energy-induced spike in inflation instigated by the Iran conflict. On Wednesday, Iran announced that it had targeted 10 vessels in proximity to the Strait of Hormuz, following the U.S. sinking of five Iranian oil tankers.

This marks the most significant escalation in maritime assaults by both parties since the onset of the six-month-long conflict. Among other metals, spot silver remained unchanged at $67.30 per ounce, while platinum increased by 0.1% to $1,897.57 and palladium saw a gain of 0.2%, reaching $1,355.44. The global platinum market is projected to experience a surplus for the first time since 2022 this year, attributed to a decline in investment and jewellery demand, according to the World Platinum Investment Council.