Gold Futures Await Economic Data and Fed Speeches

Gold futures are holding steady early Thursday as market participants anxiously await economic data and a series of speeches by Federal Reserve officials.

Price Action

• Gold for December delivery (GC00, GCZ23) is up by 30 cents, or less than 0.1%, trading at $1,944.50 per ounce on Comex.
• December silver, on the other hand, has seen a decline of 8.3 cents, or 0.4%, settling at $23.42 per ounce.

Market Drivers

Gold experienced a decline on Wednesday and closed at its lowest level since August 25th. This drop was primarily caused by strong economic data that reinforced expectations of prolonged elevated interest rates set by the Federal Reserve. Consequently, Treasury yields and the value of the U.S. dollar increased, both of which have a negative impact on gold prices.

In a note published on Thursday, strategists at Société Générale stated, "Both a higher U.S. dollar and interest rates are bearish for gold as it makes the bullion more expensive for foreign investors while diminishing its attractiveness as a non-interest-generating asset."

Early Thursday, Treasury yields slightly decreased while the U.S. dollar remained strong against major currencies.

Data and Speeches to Watch

On Thursday, investors will keep an eye on the release of weekly U.S. jobless claims and second-quarter productivity figures at 8:30 a.m. Eastern Time. Additionally, a number of regional Federal Reserve presidents are scheduled to deliver speeches throughout the day. Traders will closely analyze these remarks for potential insights into the central bank's future rate path.