Gold edged higher in early trading Thursday as the U.S. dollar softened, lowering the price of the precious metal for overseas investors. Spot gold rose 0.4% to $4,451.07 an ounce, according to market data.
“Looking ahead, investors will closely monitor upcoming U.S. labor market data and developments in the Middle East for clues on the future path of monetary policy,” Abdelaziz Albogdady, market research and fintech strategy manager at FXEM, said in an email. Albogdady added that ongoing central bank purchases continue to provide an important source of structural demand for the precious metal.
On the macroeconomic front, the University of Michigan’s 1-year inflation expectations median stood at 4.7% in June, a level that could bolster gold’s appeal as a hedge against rising prices. The Dow Jones Industrial Average closed at a record 50,687.07, underscoring a broader rally in equity markets that has seen all three major indexes close at records for five consecutive sessions for the first time since February 2017. Traders now await the release of U.S. nonfarm payrolls data and any further developments in the Middle East that could shape the outlook for interest rates and gold prices.