BASICS
* Spot gold was steady at $2,558.19 an ounce by 0051 GMT, up 2.5% so far this week.
* Gold rose more than 1% in the previous session to hit a record high after U.S. data pointed to an economic slowdown.
* US gold futures rose 0.2% to $2,586.60. * The dollar weakened 0.3%, making gold less expensive for holders of other currencies.
* Data on Thursday showed U.S. producer prices rose slightly more than expected in August, but the trend remained consistent with slowing inflation.
* Also, in the labor market On the other hand, the data showed that the number of Americans who filed new applications for unemployment benefits increased marginally last week.
* The International Monetary Fund said on Thursday it was appropriate for the U.S. Federal Reserve to initiate long-awaited monetary reform. monetary easing cycle at its meeting next week as upside risks to inflation have receded.
* Markets currently price in a 57% chance that the Fed will cut U.S. interest rates at its Sept. 17-18 meeting, and a 43% chance of a 50-basis-point cut, the CME FedWatch tool showed. It would be the first rate cut since March 2020.
* Lower rates reduce the opportunity cost of holding a zero-yield bullion.
* Traders will be bracing for (preliminary) consumer sentiment data, looking for further clues.
* SPDR Gold TrustThe world’s largest gold-backed exchange-traded fund said its holdings rose 0.53% to 870.78 tonnes on Thursday.
* Spot silver rose 0.1% to $29.94 an ounce, platinum gained 0.8% to $985.20 and palladium rose 0.8% to $1,055.64.
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