Today's gold market: Gold prices remain stable

Gold prices held steady on Thursday as investors awaited US inflation data to gauge the outlook for interest rates, while palladium and platinum rallied sharply as geopolitical tensions eased in the Middle East. Spot gold was flat at $3,333 an ounce. US gold futures rose 0.2 per cent to settle at $3,348.

David Meger, head of metals trading at High Ridge Futures, said: "Gold prices have fallen in the past few trading days due to the easing of tensions in the Middle East. In addition, the rise in inflation expectations due to Trump's tariffs and the continued delay of eagerly awaited interest rate cuts have also weighed on gold prices."

Markets now expect the Federal Reserve to cut interest rates twice this year starting in September, totaling 50 basis points. Investors are now watching Friday's personal consumption expenditure (PCE) price index for more clues about the Fed's policy path.

Spot silver rose almost 1 per cent to hit its highest level since June 18 at $36.63. "If silver does break through $37.50, there is potential for further gains," said Michael Matousek, chief trader at US Global Investors.

Palladium jumped more than 8 per cent to $1,136.68 after hitting its highest level since October 31, 2024, while platinum rose 5.1 per cent to $1,423.26, close to its highest level since September 2014.

Jeffrey Christian, managing partner at CPM Group, said: "The strengthening in platinum and palladium prices was just a phenomenon in June, reflecting speculative buying, with some investors building up inventories and believing prices were undervalued given the tight market."

The World Platinum Investment Committee (WPIC) reported in May that rising demand for platinum jewellery in China has exacerbated a structural market gap. Christian added that platinum prices could hit $1,500 an ounce in the next few days and fall to $1,200 in two weeks, with palladium prices likely to fall back to around $1,050 an ounce by mid-July.