Gold prices firmed near one-month highs on Thursday as a fresh set of soft US data added to expectations that the Federal Reserve will pause rake hikes this year, although inflation readings due later in the day could amend this outlook.
Spot gold was up 0.2 percent at $1,945.40 per ounce. US gold futures steadied at $1,972.40.
Despite this week’s gains, bullion is on track for a monthly decline of nearly 1 percent as the US dollar eyes its first monthly rise in three and US Treasury yields are poised for their fourth straight monthly climb having reached 2007 levels last week.
“Traders are waiting to see the full news cycle develop a more comprehensive view on inflationary pressures,” said Michael Langford, chief investment officer at Scorpion Minerals.
The Personal Consumption Expenditures (PCE) and monthly employment numbers will provide direction on US interest rates, Langford added.
Data released so far this week showed that the US economy grew at a slightly less brisk pace than initially thought in the second quarter, while US job openings dropped to the lowest level in nearly 2-1/2 years in July as the labor market gradually slowed.
