Gold steadies in positive territory after dipping off of two-month high as investors took profits.
Two tame inflation reports this week reduced bets that the Federal Reserve will raise interest rates in September. A hold would be considered bullish for gold, making it a more attractive alternate investment.
The consumer price index and producer price index for July came in in line with expectations this week. But investors continued to watch the situation in the Middle East because any escalation could drive up oil prices and inflation, changing the calculation.
December gold futures fell 1.1% Thursday to settle at $4,420.40 an ounce on Comex, and the front-month contract is up 0.5% so far this week. Bullion rose 1.7% in July, its first monthly increase since February, after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $26.4 (+0.60%) an ounce to $4446.80 and the DG spot price is $4384.10.
The yellow metal is testing resistance at the 100-day moving average of $4,386.83.
The CPI data Wednesday showed the price of goods rose 0.1% in July and 3.4% year-on-year. The core reading, which excludes volatile fuel and energy prices, was at 0.2% and 2.5% respectively. The Fed has a 2% annual inflation target. Wholesale prices for last month, as measured by the producer price index, came in flat on Thursday, though economists had forecast an increase.
The data curbed expectations of multiple rate hikes this year. Speculation about higher rates has shifted along with reports on the Iran war, which has boosted many costs, particularly of oil prices, because of the shutdown of the Strait of Hormuz. The Fed closely watches both inflation and labor market data when setting monetary policy.
Over 69% of the investors tracked by the CME FedWatch Tool now expect rates will remain unchanged at the Fed’s next policy meeting in September, with the rest are betting on a 25 basis point increase. A week ago, 55% were betting on a rate hike. The Fed has kept interest rates unchanged this year after three previous rate cuts. The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026.
Front-month silver futures fell 1.1% Thursday to settle at $64.99 an ounce on Comex, though the September contract is up 2.4% so far this week. The most-active contract touched a record above $115 in January. Silver slid 3.6% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently up $0.512 (+0.79%) an ounce to $65.505 and the DG spot price is $65.41.
Spot palladium dropped 3.8% Thursday to $1,326.00 an ounce and is down 4.3% in the first four days of the week. Palladium added 5.8% last month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is down $5.90 an ounce to $1323.00.
Spot platinum declined 2% Thursday to $1,728.70 an ounce and is down 1.4% so far this week. Platinum gained 6.6% last month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently up $13.60 an ounce to $1743.80.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.