-- (Updates prices.)
Gold traded higher midafternoon on Thursday as the dollar weakened after the United States reported a key inflation measure rose, and while the U.S. and Iran argue over the terms of their two-week ceasefire deal.
Gold for May delivery was last seen up US$36.10 to US$4,813.30 per ounce.
The U.S. Bureau of Economic Analysis reported the February Personal Consumption Expenditures Index (PCE), the Federal Reserve's preferred inflation measure, rose by 0.4% from January, up from a 0.3% pace in the prior month, but matching the consensus estimate, according to Marketwatch. Core PCE, excluding volatile food and energy, also rose 0.4%, unchanged from January and matching the consensus estimate.
The Bureau also released its second revision to third-quarter GDP, lowering its estimate to a rise of 0.5%, down from 0.7% in its first revision.
The data pushed the dollar lower, bullish for gold. But investors continue to look at all safe-haven options as the ceasefire deal between Iran and the U.S. remains shaky. Oil prices were mixed following a day-prior plunge as the two sides dispute the terms of their agreement and tanker traffic out of the Persian Gulf remains mostly halted.
"The passage remains mostly blocked and tanker traffic suspended after renewed Israeli strikes on Lebanon. Iran says the terms of the truce have already been violated and disputes whether it covers Lebanon. US Vice President JD Vance, heading to Islamabad for talks with Iran, says there are signs the strait may begin to reopen," Saxo Bank wrote.
The dollar weakened following the economic data, with the ICE dollar index last seen down 0.49 points to 98.64. Treasury yields also fell, with the U.S. two-year note last seen paying 3.767%, down 3.3 basis points, while the yield on the 10-year note was down 3.1 points to 4.27%.