Gold rebounds on US rate-cut bets, geopolitical risks

Gold rebounded on Thursday, driven by expectations of further U.S. interest rate cuts and geopolitical risks, while a slightly weaker dollar also lent support to bullion prices ahead of key economic data.

FUNDAMENTALS

* Spot gold GOLD was up 0.3% at $3,747.59 per ounce, as of 0045 GMT, recovering after a 0.7% fall in the previous session.

* U.S. gold futures GOLD for December delivery were up 0.3% at $3,778.50.

* The U.S. dollar index DXY fell 0.1%, making greenback-priced bullion less expensive for overseas buyers.

* San Francisco Federal Reserve Bank President Mary Daly said on Wednesday she “fully supported” the decision by the Fed to cut its policy rate last week and expects further reductions ahead.

* On Tuesday, Fed Chair Jerome Powell emphasised the need to balance inflation risks and a weakening jobs market in upcoming policy decisions.

* U.S. Treasury Secretary Scott Bessent said on Wednesday he would interview candidates next week to replace Jerome Powell as Fed chair, aiming to complete initial interviews by early October.

* Investors are awaiting the personal consumption expenditures (PCE) price index report, the Fed’s preferred inflation measure, for further interest rate cues.

* The report, due on Friday, is expected to show a month-on-month rise of 0.3% in August and 2.7% year-on-year increase, according to a Reuters poll.

* Weekly U.S. jobless claims data, due later on Thursday, may provide insights into labour market conditions.

* Markets broadly expect two more 25-basis-point Fed rate cuts this year, in October and December.

* Safe-haven bullion, which tends to thrive in a low interest rate environment, hit a record high of $3,790.82 on Tuesday.

* U.S. Vice President JD Vance told reporters that President Donald Trump was growing “incredibly impatient” with Russia because they were not “putting enough on the table to end the war.”

* Spot silver XAGUSD1! was steady at $43.92 per ounce, platinum PL1! rose 0.2% to $1,475.93 and palladium XPDUSD1! fell 0.1% to $1,210.82.