BASICS
* Spot gold rose 0.46% to $2,513.73 an ounce by 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 said Wednesday that with inflation falling further and the unemployment rate rising more than he anticipated, it may be “time to move forward” on rate cuts, but he wants to be sure before pulling the trigger.
* Traders have fully priced in Fed easing next month, with a 65.5% chance of a 25-basis-point cut and about a 34.5% chance of a larger 50-basis-point reduction, according to the CME FedWatch tool.
* Adding further support, the dollar fell 0.1%, making gold more attractive to holders of other currencies.
* On the geopolitical front, Israeli forces sent tanks deep into Khan Younis in the southern Gaza Strip and launched attacks across the enclave as they battled Hamas-led militants, killing at least 34 Palestinians on Wednesday.
* Bullion is seen as a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment.
* Market participants We now await US initial jobless claims data, due at 1230 GMT, and personal consumption expenditures (PCE) data, the Fed’s preferred gauge of inflation, due on Friday.
* Meanwhile, top artificial intelligence chipmaker Nvidia’s quarterly outlook on Wednesday fell short of investors’ lofty expectations.
* Spot silver rose 0.5% to $29.245 an ounce, platinum rose 0.22% to $932.06 and palladium rose 0.2% to $948.31.
DATA/EVENTS (GMT) 0900 EU Consumer Confid. Final Aug 1200 Germany CPI Prelim. AA Aug 1200 Germany HICP Prelim. AA Aug 1230 US GDP 2nd Estimate Q2 1230 US Initial Unemployment Rate Aug 24, weekend
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