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

19/12/2025 03:10 AST

Gold prices were broadly 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 fell 0.2% to $4,333.12 an ounce as of 0652 GMT, after rising more than 1% late on Wednesday. US gold futures also eased 0.2% to $4,363.60.

The dollar index held on to earlier gains after touching a nearly one-week high on Wednesday, limiting upside in greenback-priced bullion.

Spot silver rose 0.1% to $66.36 an ounce after hitting a record high of $66.88 in the last session, and is up 130% year-to-date, 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 US interest rate cuts continue to underpin appetite for precious metals, Reuters reported.

"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 awaited an interview with US President Donald Trump for Powell's succession.

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.

The Fed delivered its third and final quarter-point rate cut of the year last week, 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 US Consumer Price Index due later in the day, followed by the Personal Consumption Expenditures price index on Friday.

Platinum rose 4% to $1,973.91, a more than 17-year high, while palladium added 2.4% to a nearly three-year high of $1,687.39.

Asharq Al Awsat