The International Monetary Fund (IMF) supported this outlook on Thursday, suggesting it was appropriate for the Federal Reserve to start easing monetary policy at its upcoming meeting, as inflation risks have diminished. Market participants are pricing in a 43 per cent probability of a 50-basis-point rate cut and a 57 per cent chance of a 25-basis-point reduction at the Fed's September 18 meeting.

Investors are also looking ahead to US consumer sentiment data, due later today, for further insights into the Fed's rate policy trajectory.

Other precious metals saw gains as well. Spot silver edged up 0.1 per cent to $29.93 per ounce, while platinum rose 1 per cent to $986.60. Both metals are on track for weekly gains. Palladium, up 0.16 per cent to $1,048.06, is set for its best week since December 2023, spurred by concerns over potential export curbs.

Russian President Vladimir Putin added to market volatility by suggesting on Wednesday that Moscow may consider limiting exports of key metals like uranium, titanium, and nickel in response to Western sanctions.