Gold prices edged lower during Asian trading on Thursday, while silver remained close to recent record highs as investors awaited key U.S. inflation data and a series of major central bank policy decisions.
Precious metals saw some profit-taking after a strong rally over the past week, driven by rising uncertainty around the U.S. economy. Despite the pullback, demand for safe-haven assets remained elevated ahead of the U.S. consumer price index release scheduled for later in the day.
Geopolitical tensions also supported haven demand, as uncertainty surrounding Russia-Ukraine peace negotiations resurfaced amid disputes over territorial concessions and frozen Russian assets abroad.
Spot gold slipped 0.1% to $4,334.48 per ounce, while February gold futures fell 0.2% to $4,364.90 per ounce by 00:42 ET (05:42 GMT).
Silver continued to outperform, rising 0.5% to $66.51 per ounce and holding near its recent record high of $66.90. Platinum posted stronger gains, climbing to as high as $1,977.80 per ounce and moving back toward its all-time peak above $2,200.
Over the past week, silver and platinum have significantly outpaced gold. While gold gained around 0.7%, silver surged more than 7%, and platinum advanced roughly 12.2%.
U.S. economic uncertainty grows ahead of CPI
Uncertainty around the U.S. economic outlook intensified this week as official data delivered mixed signals on labor market conditions. Concerns were also raised about market liquidity following the Federal Reserve’s recent asset-buying activity.
Investors are now focused on the upcoming U.S. CPI report for clearer direction. Headline inflation is expected to edge higher, while core CPI is forecast to remain steady at an annual rate of 3%.
With inflation and employment remaining the Federal Reserve’s primary policy considerations, markets are increasingly wary of a potential stagflation scenario, where slowing growth and rising unemployment coincide with persistent inflation.
These concerns have contributed to heightened demand for gold and other precious metals as defensive assets.
Major central bank decisions in focus
Attention is also centered on upcoming interest rate decisions from major central banks. The Bank of England and the European Central Bank are scheduled to announce policy decisions on Thursday, while the Bank of Japan follows on Friday.
The BOE is widely expected to cut rates by 25 basis points as it seeks to support a sluggish U.K. economy. The ECB is anticipated to hold rates steady after a series of cuts earlier this year, amid signs of resilience across parts of the eurozone.
The Bank of Japan stands apart, with markets largely pricing in a 25 basis point rate hike. Persistent yen weakness and sticky domestic inflation have strengthened expectations for tightening, especially after the BOJ signaled it may act as soon as December.
Investor focus will be firmly on how each central bank assesses economic conditions heading into 2026, as concerns mount over slowing growth across developed economies.
