Gold prices steadied after a slight decline following a report showing core inflation in the United States rose in August, dampening expectations of a major interest rate cut by the Federal Reserve next week.
Bullion traded near $2,512 an ounce, after falling 0.2% on Wednesday as data showed core consumer prices rose 0.3% from July and 3.2% from a year ago. Two-year Treasury yields rose on speculation the Federal Reserve will move gradually on cuts, with traders increasing their bets on a quarter-point cut. Low borrowing costs typically benefit the non-interest-bearing metal.
Gold prices have risen by more than a fifth this year, their recent strength supported by growing expectations that the Federal Reserve will soon begin a rate-cutting cycle. Strong buying by central banks and strong demand in the over-the-counter market have also helped the precious metal rise.
Spot gold was steady at $2,512.40 at 7:53 a.m. in Singapore, after peaking at a record $2,531.75 in August. The Bloomberg Dollar Spot Index was flat. Silver was little changed, while platinum and palladium rose.
