Gold prices erased early losses to steady on Thursday, helped by a weaker dollar and technical buying as investors await key U.S. economic data later in the day for further clarity on future interest rates.
Spot gold was little changed at $3,179.07 an ounce as of 1102 GMT, after hitting its lowest since April 10 earlier in the session. U.S. gold futures fell 0.3% to $3,179.20.
The dollar index slipped 0.3%, making gold cheaper for other currency holders.
The U.S. and China this week agreed to temporarily slash harsh reciprocal tariffs, de-escalating a trade war and denting demand for gold as a safe haven.
On Thursday, focus will turn to U.S. producer price index data due at 1230 GMT after softer-than-expected consumer data earlier this week.
Federal Reserve Chair Jerome Powell’s speech later in the day will be watched for clues on the Fed’s rate path.
Markets are expecting 50 basis points of rate cuts this year, with the reductions expected to start from October.
Non-yielding gold tends to thrive in a low-rate environment.
Elsewhere, spot silver dipped 0.4% to $32.09 an ounce and palladium rose 0.6% to $956.58. Platinum was up 0.7% at $982.53.
The palladium market, which was in deficit in 2012-2024, will move into balance this year, with demand falling by 6% as a result of lower production of gasoline vehicles, a major industrial use of the metal, and increased recycling in China, Johnson Matthey said in a report.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Gold prices declined sharply on Wednesday, touching a five-week low, while silver also traded lower. The drop is attributed to profit-taking and liquidation by weaker hands. Meanwhile, a shift toward riskier assets in the broader market continues to pressure safe-haven demand. Today, gap down opening is expected amid Iran’s Supreme leader said to sign nuclear deal with US if all economic sanctions are lifted. However, weakness in the dollar index and uncertainty over long-term trade deal between U.S. and other nations could support metal prices at lower levels. Gold has support at $3130-3100 while resistance at $3200-3220. Silver has support at $31.75-31.55 while resistance is at $32.30-32.65. In INR gold has support at Rs91,350-90,780 while resistance at Rs92,450-92,690. Sliver has support at Rs94,380-93,550 while resistance at Rs95,950-96,750.
