The price of Physical gold was at its highest since August 11 2025 at $3,390.27 an ounce as of 0257 GMT.
Gold futures (December contract) in the US held unchanged at $3,447.40.
Investors Await Fed Decision
As market players refrained from making large wagers ahead of US economic data that would provide further insight into the Federal Reserve’s interest rate trajectory, gold prices were steady on Thursday.
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Kyle Rodda, the financial market analyst for Capital.com, said, “We have a lot of favorable demand for gold because of that type of difficulties with institutional trusts and uncertainties regarding Fed’s independence.”
Fed Data Lifts Gold
Investors are now anticipating Friday’s publication of the U.S. Fed‘s favorite inflation indicator, The Personal Consumption Expenditures (PCE) Price Index.
“But the U.S. PCE data will be really important. We are definitely hoping for anything more to drive the price beyond the key threshold of $3,400.” We remain optimistic about gold.
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According to a Reuters survey of economists, the PCE price index will increase 2.6% in July, mirroring the increase from the previous month.
Markets Eye Rate Cuts
According to the CME FedWatch Tool, markets are projecting a 25 basis point rate drop at the Fed’s policy meeting next month, which is more than 88% likely.
Generally speaking, non-yielding gold does well when interest rates are low.
The New York Fed‘s president, John Williams, said on Wednesday that although a decline in interest rates is anticipated eventually, decision-makers will need to wait to see what new economic data shows before deciding whether to lower rates next month.
In other developments, spot silver rose 0.3% to $38.72 an ounce, palladium rose 0.3% to $1,095.26, while platinum held steady at $1,348.07 each.