Ammon News - Gold edged higher on Thursday ​after a softer-than-expected US inflation report tempered expectations for a Federal Reserve ‌rate hike this month, with markets looking to upcoming jobs data for further policy signals.

Spot gold rose 0.5% to $4,175.19 per ounce by 0417 GMT, starting the month on a positive note after ​a more than 6% fall in September. US gold futures for December ​delivery gained 0.4% to $4,204.80.

Data on Wednesday showed US inflation rose less ⁠than expected in August, while price pressures were revised lower for the prior ​month.

The data reduced expectations of a rate hike in October, with markets pricing in ​a 38% chance, down from 45% before the release. Traders, however, still see a 97% probability of an increase in December.

Higher interest rates reduce the appeal of gold, which does not pay ​interest.

"Incoming data is going to be important... to see how the market deals with ​it and shapes rate-hike expectations," said Ilya Spivak, head of global macro at Tastylive.
"We are in ‌a ⁠situation where the market is dealing with a lot of conflicting forces."

The crucial US nonfarm payrolls report for September is scheduled for release on Friday.

Limiting gains for gold, the US dollar held near a two-month high. A stronger greenback makes dollar-priced metals ​costlier for holders ​of other currencies.

All ⁠of gold's "September losses are unlikely to be recovered, but there are reasons to believe that the worst of the correction is ​over for now and that there is a case for higher ​prices," said ⁠Bart Melek, global head of commodity strategy at TD Securities.

On the geopolitical front, Iran said on Wednesday it had received a US response to its latest proposal to resurrect ⁠the collapsed ​ceasefire in the Gulf, days after US President ​Donald Trump said he had rejected it.

Spot silver rose 1.2% to $61.11, platinum climbed 0.7% to $1,717.35 and palladium firmed ​0.3% to $1,207.12.


Reuters