Singapore: Gold prices edged lower on Thursday as the US dollar strengthened and investors grew cautious ahead of key US inflation data that could influence interest rate decisions.
Spot gold slipped after gaining in the previous session, while US gold futures also moved slightly lower. A stronger dollar made gold more expensive for buyers using other currencies, reducing demand for the precious metal.
Market attention is now focused on upcoming US inflation figures, which are expected to provide fresh clues about the Federal Reserve’s next policy steps. If inflation remains high, the central bank may keep interest rates elevated for longer. Higher interest rates tend to reduce the appeal of gold because the metal does not offer interest returns.
The dollar’s rise to its highest level in more than a week added pressure on gold prices. At the same time, trading volumes remained thin due to holiday closures in parts of Asia, contributing to cautious market movements.
Despite the dip, gold continues to find support from safe haven demand linked to geopolitical tensions and global economic uncertainty. Ongoing concerns in the Middle East and broader global risks have encouraged investors to hold gold as a protective asset.
Other precious metals showed mixed movement, with silver and platinum seeing modest gains amid continued safe haven interest.
Analysts expect gold prices to remain volatile in the near term as markets weigh inflation trends, Federal Reserve policy signals, currency movements, and geopolitical developments. Recent trading has remained within a broad range, suggesting consolidation rather than a clear directional trend.