Gold prices slipped slightly in Asian trading on Thursday as investors turned cautious ahead of key U.S. inflation data. Still, the metal remained close to record highs, supported by strong expectations of an interest rate cut from the Federal Reserve next week.
Spot gold was down 0.4% at $3,627.59 per ounce by 02:04 ET (06:04 GMT), while U.S. gold futures for December eased 0.5% to $3,664.30. Earlier this week, prices touched a record high of $3,673.95.
Confidence in a Fed rate cut strengthened after weaker U.S. producer price data and major downward revisions to labor market figures signaled a cooling economy. Traders now see a 25-basis-point cut as almost certain, with some expecting a larger move.
Markets are now focused on U.S. CPI data due later Thursday, which is expected to show a 0.3% monthly increase and a 2.9% annual rise. A stronger-than-expected reading could temper gold’s momentum by reducing the likelihood of aggressive rate cuts.
Concerns over Federal Reserve independence also supported safe-haven demand. A federal judge temporarily blocked President Donald Trump from removing Fed Governor Lisa Cook, raising investor worries about political interference in monetary policy. The White House has appealed the decision, adding to uncertainty.
Gold is highly sensitive to interest rate expectations since lower rates reduce the opportunity cost of holding the non-yielding asset and typically weaken the U.S. dollar. The dollar index edged up 0.1% on Thursday but remained below recent highs.
Other precious metals showed mixed moves. Silver futures rose 0.2% to $41.67 per ounce, while platinum futures slipped 0.5% to $1,008.20. In base metals, benchmark copper futures on the London Metal Exchange edged 0.2% lower to $9,987.30 a ton, while U.S. copper futures were steady at $4.61 per pound.
