Gold and silver ease as investors book profits ahead of inflation data
Gold and silver ease as investors book profits ahead of inflation data
Gold and silver pull back after a rally as the dollar strengthens and key U.S. inflation readings loom, while Fed leadership questions add a backdrop of market uncertainty.
Gold eased on Thursday after last session's 1% gain, with profits being booked as a firmer dollar took hold ahead of key U.S. inflation data. Spot gold fell 0.4% to $4,324.59 an ounce by 01:46 GMT, while U.S. gold futures slipped 0.4% to $4,356.40. Silver also drifted lower, down 0.7% to $65.78 an ounce after touching an all-time high of $66.88 in the previous session. Silver has surged 129% year-to-date, outpacing gold’s 65% rise this year. The dollar strengthened, supporting the retreat in precious metals as traders awaited upcoming data releases, including the November CPI and the Personal Consumption Expenditures price index.
Unemployment in the United States rose to 4.6% in the latest report, above economists’ expectations, raising questions about the timing of further rate movements. After delivering a 25-basis-point rate cut last week, the market is pricing in possible rate reductions in 2026, keeping non-yielding assets like gold in focus as a hedge. Investors are also watching for inflation data that could influence this outlook.
In a notable development, Fed Governor Christopher Waller, among the five finalists to succeed Chair Jerome Powell, is set to be interviewed by President Donald Trump. He said he would “absolutely” defend the central bank’s independence if challenged. Separately, Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, a move expected to add to safe-haven demand in uncertain times. Platinum rose 2.5% to $1,946.50, reaching a multi-year high, while palladium edged up 0.2% to $1,650.75 as markets weighed supply and demand dynamics amid the global economic backdrop.
Market participants will also eye France’s business climate data, BOE rate decisions, and euro area refinancing operations as the week progresses, all of which could influence the path of precious metals and broader markets.
