Gold prices were largely stable, with spot gold edging down 0.2% to $4,333.12 per ounce as of early Thursday, following a late surge of more than 1% in the previous session. U.S. gold futures also softened, slipping 0.2% to $4,363.60 per ounce, as the firmer dollar capped gains in dollar-denominated bullion.
The dollar index maintained its upward momentum after touching a near one-week high on Wednesday, reducing the appeal of gold for holders of other currencies and limiting upside movement despite supportive monetary policy signals.
Silver, however, continued to outperform, hovering near historic levels. Spot silver rose 0.1% to $66.36 per ounce, after reaching a record high of $66.88 in the prior session. The metal has gained about 130% year-to-date, significantly outpacing gold’s 65% rise, driven by strong industrial demand, sustained investment interest, and tightening global inventories.
Market analysts remain optimistic about silver’s outlook. Some project prices could test the $70-per-ounce mark next year, particularly if anticipated U.S. interest rate cuts continue to support demand for precious metals.
According to Kelvin Wong, senior market analyst at OANDA, recent comments by Federal Reserve officials have reinforced expectations of continued monetary easing. He noted that remarks by Fed Governor Christopher Waller suggested the central bank could maintain its rate-cut trajectory amid signs of a cooling U.S. labour market, providing support for both gold and silver. However, Wong cautioned that profit-taking may emerge at current elevated price levels.
Waller recently stated that the Fed could still cut interest rates as labour market conditions soften and said he would firmly defend the central bank’s independence if challenged. His comments came as he awaited an interview with U.S. President Donald Trump in the context of discussions around succession to Fed Chair Jerome Powell.
Recent economic data showed the U.S. unemployment rate rose to 4.6% in November, exceeding market expectations of 4.4% and marking its highest level since September 2021. The Fed last week delivered its third and final 25-basis-point rate cut of the year, with markets now pricing in two additional cuts in 2026.
Non-yielding assets such as gold typically benefit from lower interest rate environments, as reduced yields on bonds diminish the opportunity cost of holding bullion.
Investors are now focused on upcoming inflation indicators, including the U.S. Consumer Price Index (CPI) due later Thursday and the Personal Consumption Expenditures (PCE) price index scheduled for release on Friday, both of which could influence the Fed’s policy outlook.
Elsewhere in the metals market, platinum surged 4% to $1,973.91 per ounce, marking its highest level in more than 17 years, while palladium climbed 2.4% to $1,687.39, reaching a near three-year high.