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Shafaq News/ Gold prices edgedhigher on Thursday, with traders focusing on the upcoming U.S. economic datathat may offer further insights into an expected reduction in the FederalReserve’s interest rate next week.

Spot gold was up 0.2% at $2,515.59per ounce, as of 0353 GMT. U.S. gold futures were steady at $2,543.40.

“Gold will likely break above$2,532. Only strong macroeconomic data, particularly from the U.S., indicatingsignificant growth or economic improvement, could stop its upward trend,” saidKelvin Wong, OANDA’s senior market analyst for Asia Pacific.

Traders will focus on the U.S.Producer Price Index and initial jobless claims print, scheduled for release at1230 GMT, as well as consumer sentiment data coming out on Friday.

Headline PPI month-over-month isexpected at 0.1%, while the year-over-year read is expected at 1.8%. Thiscompares to prints of last month's 0.1% and 2.2%, respectively.

Data on Wednesday showed that U.S.consumer prices rose marginally in August, but underlying inflation showed somestickiness, which could discourage the Federal Reserve from delivering ahalf-point interest rate cut next week.

CPI data showed no major inflationspikes, which is supporting gold prices to hold above $2,500 and suggesting noimmediate changes to Fed policy, Wong added.

U.S. central bankers will likelystart long-awaited interest rate cuts next week with aquarter-of-a-percentage-point reduction, as they seek to reduce the odds of arecession even as stubbornly intact underlying price pressures put them offmore aggressive action.

Zero-yield bullion tends to be apreferred investment amid lower interest rates and geopolitical turmoil.

Spot silver was flat at $28.68 perounce and platinum gained 0.9% to $959.95.

Palladium climbed 1.3% to $1,021.84,its highest since July 8, following comments on export regulations from RussianPresident Vladimir Putin.

Putin said on Wednesday that Moscowshould consider limiting exports of uranium, titanium and nickel in retaliationagainst the West.

(REUTERS)