Washington: Gold prices inched lower on Thursday as a stronger U.S. dollar weighed on the precious metal, while investors focused on upcoming U.S. inflation data that could influence interest rate decisions.

Spot gold fell 0.2% to $4,084.29 per ounce, while U.S. gold futures for December delivery rose slightly to $4,100.90 per ounce. The dollar index gained 0.2%, making gold more expensive for buyers using other currencies.

Analysts expect short-term volatility in gold prices but maintain a long-term positive outlook. The U.S. Consumer Price Index (CPI) report, due on Friday, is anticipated to show core inflation steady at 3.1% for September. A 25-basis-point rate cut at the next Federal Reserve meeting could support gold due to its non-yielding nature.

Geopolitical developments are also influencing the market. Ongoing trade talks between the United States and China, along with new U.S. sanctions on Russian oil companies, have added to investor caution.

Gold has gained roughly 56% this year, reaching record levels earlier this week, supported by geopolitical uncertainty and continued central bank purchases. Other precious metals also saw declines, with silver down 0.2%, platinum falling 0.6%, and palladium dropping 1%.

Investors are closely watching the upcoming U.S. inflation data, balancing short-term price swings with long-term optimism for gold’s performance.