Gold Eases Below $4,100 as Stronger Dollar Weighs Ahead of U.S. CPI Data

Gold prices edged lower on Thursday as a firmer dollar pressured the metal ahead of key U.S. inflation data that could offer clues on the Federal Reserve’s rate outlook.

Spot gold slipped 0.1% to $4,089.21 per ounce as of 05:02 GMT, while U.S. gold futures rose 1% to $4,104.70. The dollar index gained 0.2%, making bullion costlier for foreign buyers.

“We’ve seen a normal correction after the recent rally, with some short-term downside before consolidation resumes,” said Brian Lan, MD at GoldSilver Central.

Markets await Friday’s U.S. CPI report, expected to show core inflation at 3.1%, as traders have nearly priced in a 25-basis-point Fed rate cut next week.

Despite the pullback, gold remains up 56% this year, hitting a record high of $4,381.21 on Monday, supported by geopolitical tensions, rate-cut bets, and strong central bank demand.

Elsewhere, silver inched up 0.1% to $48.56, platinum slipped 1%, and palladium fell 1.7%.