Gold stable before US inflation data while silver nears record high

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% at $4,332.29/oz as of 2.56am GMT, after rising more than 1% late on Wednesday. US gold futures also eased 0.2% to $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% to $66.44/oz after hitting a record high of $66.88/oz in the previous session, and is up 129% so far this year, outpacing gold’s 65% gain on firm industrial demand, steady investment interest and tightening inventories.

Some analysts expect silver to test the $70/oz 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 could still cut rates amid a cooling labour market and would “absolutely” defend its independence if challenged, as he awaits an interview with US President Donald Trump for Powell’s succession.