Gold prices rose during these moments of trading on Thursday, supported by the weakness of the US dollar and Treasury bond yields, as investors await more US data to gauge the outlook for interest rates after a key inflation report dampened hopes for a deeper cut in September.

Benchmark 10-year Treasury yields fell after hitting their lowest levels in more than a week in the previous session.

The prospect of less aggressive rate cuts may have sparked some profit-taking in gold prices overnight, said IG market strategist Yip Jun Rong.

Gold prices are regaining some momentum in the Asian session amid some views that there may have been some overreaction in the markets yesterday, Yip added, adding that a new record high may be on the table for gold amid the possibility of US interest rate cuts, incoming demand from central banks, and geopolitical and economic risks.

Data on Wednesday showed the U.S. consumer price index rose moderately in July and the annual rise in inflation slowed to below 3% for the first time since early 2021.

The data opened the door wider for the Federal Reserve to cut interest rates next month but a bigger cut is unlikely.

Traders now see a 36% chance of a 50 basis point rate cut in September, down from 50% before the data release, according to the US Rate Tracker tool available on Investing Saudi Arabia.

A low interest rate environment tends to enhance the appeal of non-yielding bullion.

The market will now focus on US retail sales and initial jobless claims data, both due at 15:30 Riyadh time.

Gold at settlement yesterday

Gold futures prices turned lower during trading on Wednesday, with the assessment of inflation data in the United States for the past month, and the possibility of a rate cut by the Federal Reserve.

At settlement, gold futures for December delivery fell 1.1%, or $28.1, to $2,479.7 an ounce, after touching $2,519.70, with the yellow metal falling for the first time in 6 sessions.

Gold and dollar now

Gold futures are now up 0.53% at $2,493 an ounce.

While spot gold contracts rose by about 0.3% to $2,455 per ounce.

On the other hand, the dollar index rose by 0.05% to 102.43 points.

Other minerals

Spot silver rose 0.4 percent to $27.7 an ounce, platinum rose 1.1 percent to $930 and palladium fell 0.6 percent to $929.75.