Gold Moves Higher As Traders Await Fed's Preferred Inflation Data

(RTTNews) - Gold prices rose on Thursday as investors are pricing in a rate cut by the Federal Reserve amid recent developments casting doubts on the Fed's independence.

Front Month Comex Gold for September delivery climbed $25.70 (or 0.75%) to $3,431.80 per troy ounce.

Front Month Comex Silver for September delivery jumped by $47.70 cents (or 1.23%) to $39.190 per troy ounce.

Data released by the Department of Labor today revealed that initial jobless claims edged lower by 5,000 from the eight-week high in the previous week to 229,000 for the period ending August 23.

Meanwhile, the less volatile four-week moving average crept up to 228,500, an increase of 2,500 from the previous week's revised average of 226,000.

Continuing jobless claims decreased to 1,954,000 for the week ending August 16 from 1,961,000 in the previous week, indicating that despite an uncertain economic scenario due to the "tariff war," companies are retaining workers.

Data released by the Commerce Department today revealed that the economy grew at an annual rate of 3.3% in the second quarter 2025, core PCE prices rose by 2.5%, and consumer spending rose 1.6% quarter-on-quarter, according to second estimates.

On the geopolitical front, the conflict between Russia and Ukraine continues despite efforts by the US to bring the leaders of both the nations to negotiating table and end the war.

Recently, at the Jackson Hole Symposium in Wyoming, Fed Chair Jerome Powell had subtly indicated that a rate cut may happen at the Fed's upcoming meeting on September 17.

On Monday, US President Donald Trump sacked one of the Fed's governors, Lisa Cook, amid allegations of fraud.

Seen in context with Trump's long-drawn criticism of Powell for keeping interest rates high, investors are analyzing Trump's Monday's move as a step towards asserting control over the central bank.

Tomorrow's release of the Personal Consumption Expenditures price index, known as the Fed's preferred measure to gauge inflation, now remains in focus.

Expectations are running high for a rate cut, with CME FedWatch Tool's indicating an 85.1% chance of a 25-basis-point rate cut at the Fed's next policy meeting in September.