Gold prices steadied near $4,400 an ounce on Thursday after rebounding about 1% in the previous session, as easing energy-driven inflation concerns reduced expectations for aggressive Federal Reserve interest rate hikes.
A softer U.S. dollar also supported bullion prices after a sharp rally in the Japanese yen renewed market attention on the possibility of currency intervention.
At 20:34 ET (00:34 GMT), spot gold was largely unchanged at $4,384.21 an ounce, while gold futures gained 0.3% to $4,429.21. Silver slipped 0.1% to $65.26 an ounce, while platinum held steady at $1,760.62. The U.S. Dollar Index was little changed at 99.57.
Gold recovered roughly 1% on Wednesday, ending a three-session losing streak after U.S. President Donald Trump suggested that the latest American military strikes on Iran would likely be short-lived.
Trump's comments helped cool a recent rally in oil prices and eased concerns that prolonged Middle East tensions could cause a sustained surge in energy costs. Higher oil prices can fuel broader inflation, potentially giving the Fed more reason to keep monetary policy restrictive or raise interest rates.
Gold typically comes under pressure when interest rates and bond yields rise because the precious metal offers no yield. Conversely, lower rate expectations tend to improve its appeal.
Bullion climbed as much as 1.6% on Wednesday as the dollar weakened following a sharp appreciation in the Japanese yen.
Federal Reserve Bank of New York President John Williams also offered investors some reassurance on inflation. Williams said there were signs that U.S. price pressures continued to moderate as tariff effects faded, while higher energy costs had not significantly spread into services inflation.
Labor market data further softened the outlook for monetary tightening. U.S. private-sector employers added just 38,000 jobs in August, according to the ADP employment report, pointing to slower hiring.
The figures helped temper Fed rate hike expectations after Chair Kevin Warsh delivered a hawkish message at Jackson Hole last Friday, which had increased speculation that policymakers could raise rates at their upcoming meeting.


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