Gold trades steady as market awaits US inflation data

Gold traded steady on Thursday as investors' attention shifted to upcoming U.S. inflation data for clues about the interest rate outlook and to developments in the Middle East, where geopolitical tensions eased.

Spot gold traded almost unchanged at $3,333 per ounce. U.S. gold futures advanced 0.2% to $3,348.

The victory over Iran presents new opportunities for peace agreements that Israel must not squander, Prime Minister Benjamin Netanyahu said.

The dollar fell, making dollar-denominated gold more attractive to holders of other currencies.

Markets anticipate two rate cuts totaling 50 basis points this year, starting in September. Investors are now looking to Friday's personal consumption expenditures (PCE) data for further clues about the Federal Reserve's monetary policy path.

Gold is considered a hedge against inflation and economic uncertainty, but its appeal diminishes in a high-interest-rate environment because it offers no profitability.

Among other metals, palladium soared more than 8% to $1,136.68, its highest level since late October 2024, and platinum gained 5.1% to $1,423.26, its highest level since September 2014.

Spot silver advanced 1% to $36.63, its highest level since June 18.

Copper gains 2%

Copper prices hit their highest level in nearly three months on Thursday, driven by a weak dollar, supply concerns, and speculative buying following a breach of key technical levels.

Three-month copper on the London Metal Exchange rose 1.9% to $9,896.50 a tonne, reaching its highest level since March 27.

"The key for us is the weak dollar, which is trending downwards, which is beneficial to our sector," said Alastair Munro, metals strategist at Marex.

The dollar index sank to its lowest level since early 2022 as concerns about the Fed's future independence undermined faith in the soundness of the country's monetary policy.

A weaker dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies.

The LME spot copper contract's premium over the three-month contract rebounded to $310 a tonne, its highest level since November 2021, from $101 on Wednesday.

While traders hope copper deliveries to LME warehouses will ease a difficult situation, they have yet to materialize.

The rise in copper prices in the United States is driven by expectations that U.S. tariffs on the industrial metal will be imposed, triggering a surge of copper into Comex warehouses.