Gold Steadies Near $4,588.50 Amid Mixed Signals

Spot gold prices have steadied near $4,588.50 an ounce in early U.S. trading Thursday, as a firmer rates backdrop offset bargain hunting after Wednesday's post-PCE pullback.

The Labor Department reported that jobless claims fell to 203,000 for the week ended August 22, below the 208,000 consensus estimate and down from a revised 207,000 the prior week.

Despite this, the market positioning is still being shaped by Wednesday's data stack, which included July PCE inflation rising 0.2% on the month and 3.7% from a year earlier, as well as Q2 GDP remaining unrevised at a 1.5% annualized pace.

The combined message has left September pricing tilted towards a Fed hold, but kept a year-end hike live, with futures implying a 36.5% probability of a 25-basis-point September hike and a 72.7% probability of at least one hike by December.