Gold prices slipped Thursday, retreating from record highs as investors awaited fresh U.S. inflation data. At 06:45 ET (10:45 GMT), spot gold fell 0.5% to $3,622.78 per ounce, while U.S. gold futures for December dropped 0.6% to $3,660.67.
The decline follows a week in which gold touched an all-time high, extending its rally of nearly 40% in 2025. The surge has been fueled by geopolitical uncertainty—from ongoing conflicts in the Middle East and Ukraine to U.S. trade disputes—as well as strong central bank demand.
Fed Policy and Inflation in Focus
Investor attention is fixed on the Federal Reserve’s upcoming decision, with markets pricing in at least one rate cut. According to ING analysts, swap traders now expect three rate cuts this year, including a 0.25 percentage point reduction next week.
Recent U.S. economic data has reinforced expectations of policy easing. A weaker-than-expected producer price index and major downward revisions to jobs figures underscored signs of a cooling labor market. The focus now shifts to August’s Consumer Price Index (CPI), expected to show a 0.3% monthly gain and a 2.9% annual increase.
Key takeaways for investors:
- 0.25-point rate cut widely expected next week.
- CPI at 2.9% YoY could confirm Fed’s easing bias.
- Any upside inflation surprise may slow gold’s momentum.
Haven Demand Remains Steady
Concerns about the Federal Reserve’s independence are also supporting safe-haven demand. A federal judge temporarily blocked President Trump’s attempt to remove Fed Governor Lisa Cook, sparking investor unease over potential political interference in monetary policy.
Gold is particularly sensitive to rate expectations. Lower rates diminish the opportunity cost of holding the non-yielding metal, while typically pressuring the dollar, boosting bullion’s appeal.
Other precious metals traded mixed:
- Silver futures up 0.2% to $41.67/oz.
- Platinum futures down 0.7% to $1,388.55/oz.
- Copper futures slightly weaker, with LME contracts at $9,987.60/ton and U.S. copper at $4.6090/lb.
As the Federal Reserve prepares for its September policy meeting, gold remains close to historic highs, underpinned by expectations of monetary easing and geopolitical instability. Traders, however, remain cautious: a hotter-than-expected inflation print could temper the rally.