Gold prices held relatively steady on Thursday, while silver eased from recent record levels, as markets absorbed cooler-than-expected U.S. inflation data alongside a series of key central bank policy decisions.
By 09:15 ET (14:15 GMT), spot gold was down 0.1% at $4,336.54 an ounce, while February gold futures also slipped 0.1% to $4,370.30 per ounce. Spot silver fell 0.9% to $66.31 per ounce, remaining close to Wednesday’s record high of $66.90. Platinum outperformed its peers, rising 0.6% to $1,946.85 per ounce and moving back toward its all-time peak above $2,200.
Precious metals faced some profit-taking after strong gains over the past week, driven by heightened uncertainty surrounding the U.S. economic outlook.
U.S. uncertainty supports safe-haven demand
Concerns over the U.S. economy intensified this week as official data sent mixed signals about labor market conditions. At the same time, the Federal Reserve’s asset purchase activity raised questions around market liquidity.
Inflation data released Thursday showed price pressures cooling more than expected in November, although inflation remains above the Fed’s long-term target. The figures marked the first full inflation update since the government shutdown ended in mid-November.
According to the Bureau of Labor Statistics, the U.S. consumer price index rose 2.7% year over year in November, down from 3.0% in September and below expectations for a 3.1% increase. Core inflation, which excludes food and energy, came in at 2.6%, undershooting forecasts of 3.0%.
The BLS previously said it did not publish CPI data for October after being unable to collect sufficient information during that month due to the extended government shutdown.
While inflation and employment remain the Federal Reserve’s primary policy considerations, investors are also increasingly focused on the risk of stagflation—a scenario in which rising unemployment coincides with persistent inflation. These concerns have helped fuel strong demand for gold and other precious metals.
Central banks diverge on policy
In Europe, the Bank of England cut interest rates by 25 basis points in an effort to support a sluggish U.K. economy. By contrast, the European Central Bank left rates unchanged, citing signs of resilience across the eurozone.
Attention now turns to Japan, where the Bank of Japan is scheduled to announce its latest policy decision on Friday. Markets are widely expecting a 25 basis point rate hike, amid sustained yen weakness and stubbornly high inflation. The BoJ has previously signaled it may move rates higher in December.
Gold may still have room to rise
Despite recent gains, gold could continue to find support, according to Nikos Tzabouras, Senior Market Analyst at Tradu.
“Meanwhile, gold continues to benefit from structural support, including central bank buying amid a de-dollarisation push and broader debasement trends linked to widening fiscal deficits, which are encouraging investors to diversify away from major currencies. At the same time, the U.S. dollar could remain under pressure from the Fed’s dovish stance following last week’s rate cut, compounding bullion’s strength.”