Gold Stabilizes Near Six-Month Low Amid Market Anticipation

Gold prices stabilized on Thursday after reaching their lowest levels in six months, as investors await the release of US Producer Price Index (PPI) data. This data is expected to provide new indications regarding the Federal Reserve's monetary policy direction. Spot gold rose 0.1% to $4077.39 per ounce by 04:29 GMT, having earlier touched its lowest level since November 21 at $4022.09 per ounce. In contrast, US gold futures for August delivery fell 0.8% to $4098.90 per ounce. These market movements followed the release of data showing US consumer inflation in May accelerated at its fastest pace in three years. This surge was driven by an increase in energy prices amid escalating tensions in the Middle East. According to market estimates, the probability of the Federal Reserve raising interest rates by December has increased to over 70%, as indicated by the CME FedWatch tool. In geopolitical developments, US forces announced the start of a new round of strikes against targets inside Iran, hours after President Donald Trump threatened additional attacks if a peace agreement is not reached. Concurrently, Iran's declaration of closing the Strait of Hormuz contributed to oil prices rising by more than two dollars per barrel. Gold is typically viewed as a safe haven and an inflation hedge; however, rising interest rates diminish the precious metal's appeal as it yields no returns. Regarding other precious metals, spot silver declined 0.1% to $63.64 per ounce, platinum stabilized at $1663.80, while palladium increased 2.3% to $1241.77.