Gold prices held near $4,400 an ounce on Thursday after a rebound on Wednesday as remarks from U.S. President Donald Trump and comments from a Federal Reserve official eased concerns about persistent inflationary pressures.
The spot price of gold was little changed at $4,384.21 per ounce at 00:34 GMT, following a 1% gain the previous session that broke a three-day losing streak. Gold futures rose 0.3% to $4,429.21, after climbing as much as 1.6% on Wednesday.
The rebound followed comments from Trump suggesting any U.S. military action against Iran would be limited in scope, which eased fears of prolonged supply disruptions to global energy markets. Those concerns had earlier driven oil prices higher and raised inflation expectations. John Williams, president of the Federal Reserve Bank of New York, also said there is evidence that U.S. inflation is easing as the impact of tariffs fades and that higher energy prices are not spreading into other services.
The softer tone from policymakers contrasted with a hawkish speech by Fed Chair Kevin Warsh at the Jackson Hole economic symposium last Friday, which had heightened expectations for aggressive monetary tightening. The ADP employment report released on Wednesday showed U.S. companies added just 38,000 jobs in August, further tempering concerns about labor market strength and inflationary pressures.
Other precious metals showed mixed performance. Silver fell 0.1% to $65.26 per ounce, while platinum was little changed at $1,760.62. The U.S. Dollar Index held steady at 99.57.
Market focus now shifts to upcoming policy meetings, with investors reassessing rate-hike expectations in light of the recent remarks and data.
