On COMEX, gold was trading at $4,473.40 an ounce, up $5.90 or 0.13% from the previous close. The metal had touched an intraday high of $4,509.10 an ounce and a low of $4,456.50 an ounce.
COMEX silver was quoted at $65.58 an ounce, down $0.12 or 0.18%. It moved between $66.45 and $65.22 an ounce during the session.
The latest moves follow a rise in gold prices on Wednesday (August 12), when the metal climbed to its highest level in more than two months after US inflation data for July came in broadly in line with expectations.
Spot gold rose 0.9% to $4,406.64 an ounce on Wednesday (August 12), while US gold futures settled 0.6% higher at $4,467.50 an ounce.
The US Consumer Price Index increased 0.1% in July after declining 0.4% in June. The reading matched market expectations and reduced expectations of a near-term shift towards tighter monetary policy.
Markets are now pricing in a lower probability of a rate hike at the Federal Reserve’s September meeting. According to the CME FedWatch Tool, traders were pricing in about a 40% chance of a rate hike, compared with 46% before the inflation data.
Gold typically comes under pressure when interest rates rise because higher yields increase the opportunity cost of holding the non-yielding asset. Expectations of lower or stable rates, in contrast, can support demand for bullion.
A weaker US dollar has also provided some support to gold. Investors will now watch the US Producer Price Index, due later on Thursday, for further clues on the inflation and interest-rate outlook.
Geopolitical developments remain another factor for precious metals. Renewed tensions around shipping routes and the conflict involving Iran-aligned Houthis could affect oil prices and, in turn, influence expectations for inflation and interest rates.
Silver also gained on Wednesday (August 12), rising 1.3% to $65.49 an ounce and touching its highest level since June 22.
-With Reuters inputs
