Gold prices slipped on Thursday, weighed down by a stronger dollar as investors remained cautious ahead of US inflation data that could shape the Federal Reserve’s (Fed) policy path, while silver hovered near record highs.

Spot gold fell 0.4% to US$4,323.57 an ounce as of 1210GMT. US gold futures also eased 0.4% to US$4,356.10.

The dollar index edged up after touching a nearly one-week high on Wednesday, making greenback-priced bullion more expensive for overseas buyers.

Spot silver fell 0.1% to US$66.19 an ounce, after hitting a record high of US$66.88 in the previous session.

“The slightly stronger dollar is a headwind for both (gold and silver)… some cautious investors are preferring to be on the safe side and not running into the (inflation) report with an open position,” said UBS analyst Giovanni Staunovo.

The white metal, however, is up 129% so far this year on stronger industrial demand and an ongoing supply deficit.

US President Donald Trump said on Wednesday the next Fed chairman will be someone who believes in lower interest rates “by a lot”. Trump will announce the successor to current Fed Chair Jerome Powell early next year.

Fed Governor Christopher Waller, a candidate for the Fed chair, said on Wednesday the central bank still has room to cut interest rates amid rising job market weakness.

Earlier this week, data showed the US unemployment rate rose to 4.6% in November, above a Reuters poll forecast of 4.4% and the highest since September 2021.

Source: theedgemalaysia