Gold edges higher on weaker dollar, US inflation data in focus

Gold instead is teeing off on a weaker dollar, ⁠which notably is not moving up despite the fact that U.S. rates are ​going higher," Marex analyst Edward Meir said. The U.S. dollar remained subdued, making dollar-priced metals ​less expensive for holders of other currencies.

The U.S. producer price index data is due at 1230 GMT, and consumer inflation figures are scheduled for release on Friday. The Fed will hold its interest ​rate steady at its September 15-16 meeting and for the rest of this year, ​again defying market expectations for a series of hikes, in ‌a Reuters ⁠poll.

The CME Fed. Watch Tool showed markets pricing in a 60% chance of a U.S. rate increase this month. Higher rates generally make non-yielding assets less attractive to investors.

Gold is supported "as U.S. fiscal pressures continue to undermine confidence in the long-term value of ​government debt and ​the currency used ⁠to finance it," Daniel Hynes, senior commodities strategist at ANZ, said in a note. Last month, total U.S. debt topped $40 trillion for the ​first time, drawing fresh warnings that a fiscal crisis is brewing.

On ​the geopolitical ⁠front, Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, in the biggest wave of attacks ⁠on shipping ​by both sides since the start of the ​six-month-old war.

Among other metals, spot silver rose 0.3% to $67.50 per ounce, platinum fell 0.4% to $1,888.05 and palladium gained ​0.2% to $1,356.20.