New Delhi: Gold prices were largely steady on Thursday as investors stayed cautious ahead of key inflation data from the United States that could shape future interest rate decisions. At the same time, silver continued to trade close to record highs, supported by strong industrial demand and investor interest.
In international markets, gold held near recent highs after gaining strongly in recent weeks. Traders avoided making large bets as they waited for US inflation figures, including consumer price data, which are expected to give clearer signals on the future policy path of the US Federal Reserve. A slightly firm US dollar also limited further gains in gold during the session.
Silver, however, remained the standout performer in the precious metals market. Prices stayed close to all time highs after a sharp rally this year. Analysts say silver has benefited from its dual role as a safe haven asset and an industrial metal. Demand from sectors such as solar energy electric vehicles and electronics has remained strong, while supply growth has been limited.
Market participants said expectations of interest rate cuts in the coming months have continued to support precious metals. Recent US economic data, including signs of a cooling labour market, have increased confidence that borrowing costs could come down next year. Lower interest rates generally make non yield bearing assets like gold and silver more attractive.
In India, bullion prices remained elevated in line with global trends. Silver prices stayed near historic highs in domestic markets, while gold hovered close to peak levels. High prices have made some retail buyers cautious, especially in the jewellery segment, but investor interest in bullion as a hedge against inflation and global uncertainty remains firm.
Looking ahead, analysts say the direction of gold prices will largely depend on incoming US inflation data and movements in the dollar. A softer inflation reading could strengthen expectations of rate cuts and support further gains. Silver is expected to remain volatile but strong, driven by sustained industrial demand and tight supply conditions.
Overall, precious metals continue to attract attention as investors balance economic uncertainty inflation risks and central bank policy signals toward the end of the year.