Gold prices rose after a modest drop in Treasury yields provided some relief from the strong dollar, but investors awaited further US economic data to gauge the outlook for interest rates.
After hitting a one-week low on Wednesday, spot gold XAU= was up 0.1% at $1,918.64 per ounce by 0906 GMT. Gold futures in the United States were barely changed at $1,943.
The US dollar stayed near its best level since March amid stronger-than-expected data from the US services sector. Meanwhile, benchmark 10-year Treasury rates fell from a two-week high reached earlier in the session.
Boston Fed President Susan Collins urged the central bank to tread carefully in its next monetary policy measures on Wednesday, despite evidence of progress in lowering inflation.
According to the CME FedWatch tool, traders believe the Fed will keep interest rates steady at its September 19–20 meeting.
The Fed’s “Beige Book,” issued on Wednesday, showed that economic growth in the United States has been “moderate” in recent weeks, despite decreasing job growth and inflation in most parts of the country.
