[BENGALURU] Gold prices were flat on Wednesday (Sep 10), as investors awaited key inflation reports due later this week, while expectations of a US interest rate cut this month helped keep bullion above the critical US$3,600-per-ounce level.
Spot gold held its ground at US$3,624.39 per ounce, as at 9.01 am, after hitting a record high of US$3,673.95 on Tuesday.
US gold futures for December delivery slipped 0.5 per cent to US$3,662.30.
The US dollar index extended its gains against rival currencies, rebounding from a seven-week low hit in the previous session and making gold more expensive for other currency holders.
US 10-year Treasury yields edged higher from a five-month low.
Focus now shifts to US producer price inflation data, due later in the day, followed by consumer price inflation reading on Thursday for more cues on the Federal Reserve’s interest rate trajectory.
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The US economy likely created 911,000 fewer jobs in the 12 months to March than previously estimated, the government said on Tuesday, suggesting that job growth was already stalling before US President Donald Trump’s aggressive tariffs on imports.
US nonfarm payroll data released last week also pointed to weakening labour market conditions and sealing the case for a Fed rate cut next week.
Markets are fully pricing in a 25-basis-point rate cut next week, while the likelihood of a larger 50-basis-point cut stands at around 8 per cent, according to CME Group’s FedWatch Tool.
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Non-yielding gold typically performs well in a low-interest-rate environment.
Gold prices have gained 38 per cent so far this year, following a 27 per cent jump in 2024, bolstered by soft dollar, strong central bank accumulation, dovish monetary settings and heightened global uncertainty.
Elsewhere, spot silver fell 0.3 per cent to US$40.77 per ounce. Platinum gained 0.2 per cent to US$1,370.44 and palladium slipped 0.8 per cent to US$1,138.817. REUTERS