• Gold edges bouncing from a daily low of $2,603 after US inflation data showed a slight increase, tempered by weaker jobs figures.
• The swaps market now expects the Fed to cut rates by 25 bps at the November meeting, boosting Bullion prices.
• Fed officials, including Austan Goolsbee and John Williams, hinted at gradual rate cuts, while Raphael Bostic remains open to pausing cuts in November.

Gold prices recovered some ground on Thursday during the North American session, edging up some 0.67% after a hotter-than-expected US inflation report, which was tempered by soft US jobs data. Nonetheless, recent hawkish comments by a Federal Reserve (Fed) official capped the precious metal’s advance. The XAU/USD trades at $2,624 after bouncing off a daily low of $2,603.

August’s inflation in the United States (US) was slightly higher than expected, though jobs data offset it. The US Department of Labor announced that more people than expected applied for unemployment benefits, which could cause the Fed to lower borrowing costs aggressively.

After the data, the swaps market sees the Fed cutting interest rates by 25 bps at the November meeting.

The US economic schedule featured some Fed speakers. First, Chicago Fed President Austan Goolsbee said he sees gradual cuts over the next year and a half now that inflation is close to the Fed’s 2% goal.

New York Fed President John Williams said he expects more rate cuts at an appearance in Binghamton, New York. He added, “The timing and pace of future adjustments to interest rates will be based on the evolution of the data, the economic outlook, and the risks to achieving our goals.”