GOLD prices were steady on Thursday, supported by dovish Federal Reserve signals but restrained by a resilient dollar ahead of key US inflation data this week, while silver hovered near record highs.
Spot gold was down 0.2 per cent at US$4,332.29 an ounce, as of 0256 GMT, after rising more than 1 per cent late on Wednesday. US gold futures also eased 0.2 per cent to US$4,364.70.
The dollar index held on to earlier gains after touching a near one-week high on Wednesday, limiting upside in greenback-priced bullion.
Spot silver rose 0.2 per cent to US$66.44 an ounce after hitting a record high of US$66.88 in the previous session, and is up 129 per cent so far this year, outpacing gold’s 65 per cent gain on firm industrial demand, steady investment interest and tightening inventories.
Some analysts expect silver to test the US$70-per-ounce level next year, particularly if US interest rate cuts continue to underpin appetite for precious metals.
“Remarks by Waller indicate that the Fed could maintain its ongoing rate cut cycle … So that’s supporting both gold and silver right now,” said Kelvin Wong, senior market analyst at Oanda, adding that some profit-taking could emerge at current levels.
Fed Governor Christopher Waller said the central bank can still cut rates amid a cooling labor market and would “absolutely” defend its independence if challenged, as he awaits an interview with US President Donald Trump for Powell’s succession.
Data earlier this week showed the US unemployment rate rose to 4.6 per cent in November, above a Reuters poll forecast of 4.4 per cent and the highest since September 2021.
The Fed last week delivered its third and final quarter-point rate cut of the year, with markets now pricing in two additional 25-basis-point cuts in 2026.
Non-yielding assets such as gold typically benefit in a lower-interest-rate environment.
Investors are now awaiting November’s US Consumer Price Index, due later on Thursday, followed by the Personal Consumption Expenditures price index on Friday.
Platinum rose 3.6 per cent to US$1,966.0, its highest point in more than 17 years, while palladium added nearly 1 per cent to a near three-year high of US$1,663.0. REUTERS
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