Gold prices edged lower on Thursday, holding close to record highs as investors await US consumer inflation data later in the day.
Spot gold was trading at $3,622.77 per ounce at 10:00 GMT, while futures stood at $3,664.10.
The metal appears to be consolidating recent gains after weaker-than-expected US producer price figures for August reinforced expectations of a Federal Reserve rate cut next week. Lower trade services margins and modest goods cost increases drove the drop in producer prices, bolstering the case for easing.
Attention now turns to the US Consumer Price Index, due at 13:30 GMT, with forecasts pointing to a 0.3% monthly rise and a 2.9% annual increase. Investors will also monitor weekly jobless claims alongside last week’s revised nonfarm payroll figures, which revealed 911,000 fewer jobs in the 12 months through March, highlighting a softer labor market.
Gold remains supported by expectations of a 25-basis-point Fed cut next Wednesday, with markets also pricing in a small chance of a larger 50-point reduction. While a stronger-than-expected CPI reading could spark a short-term dollar rally and weigh on gold, broader bets on rate cuts are likely to keep bullion well supported.