Gold Holds Ground Ahead of Key U.S. Inflation Data as Silver Nears Record Highs

Gold prices were broadly steady on Thursday, holding recent gains supported by dovish signals from the U.S. Federal Reserve, even as a resilient dollar limited further upside ahead of key U.S. inflation figures due this week.

Spot gold edged slightly lower, trading down around 0.1–0.2% near $4,330 per ounce early Thursday, after a strong rally in the previous session lifted prices more than 1%. U.S. gold futures also eased modestly, reflecting cautious positioning by investors ahead of the inflation report that could influence the Fed’s policy path.

The dollar index’s recent strength has acted as a headwind for dollar-priced bullion, making it more expensive for overseas buyers and tempering demand. However, expectations that the Federal Reserve may continue cutting interest rates next year have supported safe-haven interest in gold, which typically benefits in a lower-rate environment.

Meanwhile, silver prices extended their impressive run, remaining close to historic highs reached in recent sessions. Spot silver climbed around 0.2–0.3%, hovering near $66.40 per ounce after briefly touching a record peak. The white metal has surged roughly 130% year-to-date, significantly outperforming gold, driven by strong industrial demand, solid investment interest, and tightening inventories.

Analysts say silver’s outperformance reflects its dual role as both an industrial and safe-haven asset. Some market participants now forecast that silver could test the $70-per-ounce mark next year if expectations of further rate cuts persist.