Gold climbs on Fed rate-cut optimism, eyes on US data

Gold prices gained on Thursday, helped by prospects of a U.S. interest rate cut in September and a weaker dollar, as traders awaited jobs data and a key inflation print from the world's top economy for signals on the Federal Reserve's policy path.

FUNDAMENTALS

* Spot gold rose 0.46% to $2,513.73 per ounce, as of 0034 GMT. Bullion hit a record high of $2,531.60 on Aug. 20.


* U.S. gold futures rose 0.4% to $2,546.70.

* Federal Reserve Bank of Atlanta President Raphael Bostic on Wednesday said that with inflation down farther and the unemployment rate up more than he anticipated, it may be "time to move" on rate cuts, but he wants to be sure before pulling that trigger.

* Traders have fully priced in a Fed easing for next month, with a 65.5% chance of a 25-basis-point cut and about 34.5% chance of a bigger 50-bp reduction, according to the CME FedWatch tool.

* Adding further support, the dollar dipped 0.1% making gold more appealing for holders of other currency.

* On the geopolitical front, Israeli forces sent tanks deeper into Khan Younis in the southern Gaza Strip and launched strikes across the enclave as they battled Hamas-led militants, killing at least 34 Palestinians on Wednesday.

* Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment.

* Market participants are now awaiting U.S. initial jobless claims data, due at 1230 GMT and Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, scheduled for Friday.

* Meanwhile, leading AI chipmaker Nvidia's quarterly forecast on Wednesday failed to meet lofty expectations of investors.

* Spot silver was up 0.5% to $29.245 per ounce, platinum edged 0.22% higher to $932.06 and palladium climbed 0.2% to $948.31.

DATA/EVENTS (GMT) 0900 EU Consumer Confid. Final August 1200 Germany CPI Prelim YY August 1200 Germany HICP Prelim YY August 1230 US GDP 2nd Estimate Q2 1230 US Initial Jobless Clm 24 Aug, w/e