Gold prices were little changed during Asian trading on Thursday, supported by dovish signals from the United States Federal Reserve but capped by a firmer dollar ahead of key U.S. inflation data due later this week.
Silver, meanwhile, continued to trade near record highs.
By 4:10 pm AEDT (5:10 am GMT), spot gold was down 0.1% at US$4,334.80 per ounce, while spot silver added 0.5% to trade near fresh record highs of $66.35 per ounce.
Silver is up 129% so far this year, significantly outperforming gold’s 65% gain, supported by strong industrial demand, steady investment interest and tightening inventories.
The U.S. dollar index held on to earlier gains after touching a near one-week high on Wednesday, limiting upside for dollar-denominated bullion.
Meanwhile, Federal Reserve Governor Christopher Waller said the central bank could still cut interest rates amid a cooling labour market and would absolutely defend its independence if challenged, as he awaits an interview with U.S. President Donald Trump over succession to Fed Chair Jerome Powell.
Data released earlier this week showed the U.S. unemployment rate rose to 4.6% in November, above market forecasts of 4.4% and posting the highest level since September 2021.
The Federal Reserve 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.
