Gold prices picked up strength on Thursday, fueled by strong expectations of a Federal Reserve rate cut in September with investors focusing on U.S. inflation data for further insights on the potential size of the cut.
Spot gold added 0.91% to $2,525.12 per ounce. U.S. gold futures rose 0.82% to $2,558.60.
The Israeli military said its troops killed five Palestinian militants who were hiding inside a mosque in the West Bank city of Tulkarm.
Gold, which yields no interest of its own, is used as a safe investment during times of economic and geopolitical uncertainties.
Traders see a 65.5% chance of a 25-basis-point (bp) rate cut in September and about a 34.5% probability of a bigger 50-bp reduction. Investors are now looking at the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation, on Friday.
Elsewhere, spot silver firmed 1.2% to $29.47. Platinum gained 1.6% to $944.65 and palladium was up 3.3% to $977.00.
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