Gold Steady Ahead Of Key US Inflation Data; Silver Near Record Highs

Gold prices were steady on Thursday, supported by dovish Federal Reserve signals but restrained by a resilient dollar ahead of key U.S. inflation data this week, while silver hovered near record highs.

Spot gold was down 0.1% at $4,334.70 an ounce, as of 0534 GMT, after rising more than 1% late on Wednesday. U.S. gold futures also eased 0.2% to $4,365.40.

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 0.3% to $66.48 an ounce after hitting a record high of $66.88 in the previous session, and is up 130% 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-per-ounce level next year, particularly if U.S. 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 can still cut rates amid a cooling labor market and would "absolutely" defend its independence if challenged, as he awaits an interview with U.S. President Donald Trump for Powell's succession.

Data earlier this week showed the U.S. unemployment rate rose to 4.6% in November, above a Reuters poll forecast of 4.4% and the highest since September 2021.

The Fed last week delivered its third and final quarter-point rate cut of the year, with markets now pricing in two additional 25-basis-point cuts in 2026.

Non-yielding assets such as gold typically benefit in a lower-interest-rate environment.

Investors are now awaiting November's U.S. Consumer Price Index, due later on Thursday, followed by the Personal Consumption Expenditures price index on Friday.

Platinum rose 2.9% to $1,952.90, its highest point in more than 17 years, while palladium added 1.1% to a near three-year high of $1,666.44.