Gold prices moved lower on Thursday, close to record highs, as investors waited for U.S. consumer inflation numbers later in the day after softer-than-forecast producer price data cemented expectations of a Federal Reserve rate cut next week.
Spot gold was 0.2% lower at $3,633.97 an ounce, at 0411 GMT. Bullion reached a record high of $3,673.95 on Tuesday.
U.S. gold futures for December delivery declined 0.3% to $3,671.90.
“Gold appears to be backing off recent gains as markets await U.S. Consumer Price Index readings and implications for Fed rate cut expectations,” wrote Ilya Spivak, global macro head at Tastylive.
US producer prices dipped unexpectedly last month on the back of shrinking trade services margins and small increases in goods costs.
Investors are currently awaiting U.S. CPI numbers, which come out at 1230 GMT, with a Reuters poll predicting a 0.3% monthly advance in August after a 0.2% gain in July. CPI is also seen to have increased 2.9% year-on-year, versus 2.7% in July.
Lower-than-forecasted nonfarm payroll numbers last week, and revised estimates showing 911,000 fewer jobs in the past 12 months through March, have re-stoked expectations of easing monetary policy. Weekly jobless claims figures, released at 1230 GMT, will provide additional signals on the labour market.
Gold consolidates after record peak 2025
The trend is higher, but a sizzling CPI report will boost the dollar, negatively impact gold prices short term, compeling a pullback. Losses will be confined though as markets won’t sell off rate cut expectations even if it pushes them further along the timeline,” Spivak wrote.
The Fed is expected to lower interest rates by 25 basis points during its meeting next Wednesday, while investors also factored in a thin chance of 50-basis-point cut, according to CME FedWatch tool.
Reduced interest rates generally favor non-yielding gold.
Separately, U.S. President Donald Trump’s administration filed an appeal on Wednesday against a federal judge’s order that temporarily halted the ousting of Fed Governor Lisa Cook.
Gold consolidates after record peak 2025
Otherwhere, spot silver declined 0.1% to $41.10 per ounce. Platinum decreased 0.2% to $1,383.50 and palladium remained unchanged at $1,173.45.
