Gold prices steadied on Thursday, although prices hovered near a six-month low in the previous session due to a rise in the dollar and Treasury yields, as markets awaited more US economic data for clues on the Federal Reserve's interest rate path.

Gold and dollar now

Gold futures rose slightly to $1,892 an ounce, or 0.05%.

Meanwhile, spot gold contracts rose to $1,875 per ounce.

On the other hand, the dollar index stabilized at 106.382 points.

Gold at settlement yesterday

Gold prices fell at the settlement of trading yesterday, Wednesday, in light of the continued gains of the dollar index following growing expectations of monetary tightening by the Federal Reserve.

Upon settlement, gold futures for December delivery fell by 1.5%, or $28.9, to reach $1,890.9 per ounce, the lowest settlement since February 24.

Important data and Federal Reserve statements, the strength of the dollar and the rise in bonds

US durable goods orders rose in August and business spending on equipment appears to be regaining momentum, data showed on Wednesday.

“The durable goods data was higher than expected — that's why the 10-year Treasury yield rose, that's why the dollar also rose, that's why we saw selling pressure on gold,” said Hugo Pascal, a precious metals trader at InProved.

The dollar hit a 10-month high against major peers, while Treasury yields jumped to a new 16-year peak as investors bet the US economy will outperform its rivals in a high-interest-rate environment.

Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that it is not yet clear whether the US central bank is finished raising interest rates amid sufficient evidence of continued economic strength.

Higher interest raises the opportunity cost of holding bullion, which is priced in dollars and yields no interest.

Market focus now turns to the second-quarter revised US GDP growth rate and weekly jobless claims due later in the day, with the August personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, due on Friday.

Meanwhile, the top Republican in Congress, Kevin McCarthy, on Wednesday rejected a temporary funding bill, bringing the US government closer to the fourth partial shutdown in a decade.

other metals

Spot silver fell 0.2% to $22.48 an ounce, while platinum rose 0.1% to $888.25.

Palladium fell 0.2 percent to $1,219.83, and is set to decline for the sixth consecutive session if losses continue.