Gold Prices Ease but Stay Near Record Highs Ahead of U.S. Inflation Data

Gold prices slipped in Asian trading on Thursday but remained close to record highs as investors awaited key U.S. inflation figures. Spot gold fell 0.4% to $3,627.59 per ounce at 02:04 ET (06:04 GMT), while U.S. gold futures for December dropped 0.5% to $3,664.30. Earlier this week, prices touched an all-time high of $3,673.95.

Weaker-than-expected U.S. producer price index (PPI) data and significant downward revisions to job figures boosted expectations of a Federal Reserve rate cut next week. Markets now largely anticipate a 25 basis point cut, with some traders betting on a deeper move. Attention is focused on Thursday’s U.S. consumer price index (CPI) data, forecast to show a 0.3% monthly rise and a 2.9% annual gain. Any upside surprise could curb momentum for gold by cooling expectations of aggressive easing.

Political uncertainty has also supported safe-haven demand. A federal judge temporarily blocked President Donald Trump from removing Fed Governor Lisa Cook, raising concerns about political interference in central bank independence. The Trump administration has appealed, prolonging investor unease.

Gold remains highly sensitive to interest rate outlooks. Lower rates reduce the opportunity cost of holding the non-yielding asset while typically pressuring the U.S. dollar. On Thursday, the dollar index edged 0.1% higher but stayed below recent peaks.

Other precious metals showed mixed performance. Silver futures gained 0.2% to $41.67 per ounce, while platinum futures fell 0.5% to $1,008.20. In base metals, benchmark copper futures on the London Metal Exchange slipped 0.2% to $9,987.30 per ton, while U.S. copper futures held steady at $4.61 a pound.

At current levels, gold continues to trade near historic highs, with Fed policy and inflation trends set to be the biggest drivers in the coming days.