Gold prices edged lower in Asian trading on Friday but were still on track for a modest weekly gain, while silver and platinum significantly outperformed and hovered near record highs amid strong safe-haven demand.
Broader metal prices also moved higher after softer-than-expected U.S. inflation data strengthened expectations for additional Federal Reserve interest rate cuts. Gains in metals came even as the U.S. dollar recovered slightly from recent losses.
Spot gold slipped 0.1% to $4,326.89 per ounce, remaining close to its October record high. February gold futures declined 0.2% to $4,354.70 per ounce by 00:48 ET (05:48 GMT). Despite the pullback, gold prices were up around 0.4% for the week.
Silver and platinum post strong weekly gains
Silver and platinum outpaced gold on both Friday and over the course of the week, with both metals approaching record levels.
Spot silver rose 0.5% to $65.84 per ounce and was up roughly 6% for the week, marking its fourth consecutive weekly gain. Spot platinum climbed 0.6% to $1,937.50 per ounce and surged about 10.5% on the week.
Other precious metals also recorded strong gains. Spot palladium advanced 1.4% to $1,709.20 per ounce and was heading for a weekly jump of around 14%.
Investor demand for silver and platinum has outpaced gold in recent weeks as market participants increased exposure to tangible assets amid growing concerns about slowing economic growth in developed economies. While offering similar stability to gold, silver and platinum remain considerably cheaper, particularly after gold’s strong rally over the past year.
Expectations of tighter supply for silver and platinum in the coming year have further supported prices.
Soft U.S. CPI boosts rate cut expectations
Precious metals broadly advanced after U.S. consumer price index data for November came in weaker than expected, reinforcing expectations that the Federal Reserve could deliver more interest rate cuts.
However, analysts cautioned that the November data may have been affected by disruptions caused by the government shutdown in October and early November. Goldman Sachs analysts said December’s inflation data is likely to provide clearer guidance on the outlook for U.S. inflation and monetary policy, with November’s reading unlikely to heavily influence the Fed’s decisions.
Heightened uncertainty around the U.S. economic outlook also fueled safe-haven demand this week, after an unexpected rise in unemployment raised concerns about potential stagflation risks.
