USA: Spot gold prices eased 0.60% to $3,618.74 per ounce, retreating from Tuesday’s record high of $3,673.95, reflecting a minor pullback after sustained gains. US gold futures for December delivery also dipped 0.58% to $3,660.50, indicating some profit-taking among investors. Analysts attribute the slight decline to a combination of traders locking in gains and the strengthening US dollar, which has made gold relatively more expensive for holders of other currencies. Despite this short-term correction, the market sentiment remains broadly bullish as prices continue to hold above critical support levels.
Other precious metals mirrored gold’s movements, with silver dropping 0.51% to $40.96 per ounce, platinum down 1.04% to $1,379.31, and palladium slipping 0.01% to $1,182.04. These declines reflect broader market adjustments rather than fundamental changes in supply or demand. Traders are closely monitoring global economic data and monetary policy signals, which continue to exert influence on precious metal markets. The slight pullbacks have been seen by some analysts as healthy consolidation following recent strong rallies across commodities.
Market dynamics were further shaped by the US dollar index rising 0.2% to near a one-week high. The stronger dollar tends to weigh on gold prices as it increases the cost of gold for international buyers. Economic data from the US, including softer producer prices in August and weaker-than-expected job market revisions, contributed to mixed signals for traders. While profit-taking created downward pressure, expectations for potential monetary easing and lower interest rates have limited the extent of losses in gold and other precious metals.
Looking ahead, investors are awaiting key upcoming indicators, including weekly jobless claims and the Consumer Price Index (CPI), which could influence the Federal Reserve’s next policy decision. Current market projections suggest a 25 basis point rate cut, although there remains a small chance of a deeper 50 basis point reduction. These data releases are expected to shape near-term gold price movements, with traders maintaining a cautious but optimistic outlook amid ongoing uncertainty in both labor markets and inflation trends.
