Gold prices climbed today (Thursday) as heightened tensions in the Middle East fueled demand for safe-haven assets, while soft U.S. inflation data bolstered expectations of a Federal Reserve interest rate cut.
Spot gold rose 0.3% to $3,364.10 per ounce as of 00:17 GMT, while U.S. gold futures advanced 1.2% to $3,384.40.
The geopolitical uncertainty followed an announcement by U.S. President Donald Trump regarding the evacuation of American citizens from the Middle East, citing increased regional risks. This move prompted investors to seek refuge in safer assets such as gold, according to news reports.
Meanwhile, the U.S. dollar index slipped 0.1%, making gold more affordable for international buyers.
Economic data released Wednesday showed the U.S. consumer price index (CPI) rose just 0.1% in May, below market expectations of a 0.2% increase. The softer inflation reading reinforced speculation that the Federal Reserve could lower interest rates by 50 basis points before the end of the year.
Market participants are now awaiting the release of the U.S. producer price index (PPI), due at 12:30 GMT, for further signals ahead of the Fed’s upcoming policy meeting on June 17–18.
Among other precious metals:
- Silver gained 0.3% to $36.32 per ounce.
- Platinum rose 0.8% to $1,265.32, holding near a four-year high.
- Palladium dropped 1% to $1,069.65.
