Gold Prices Hold Steady Ahead of US Inflation Data: What Investors and Businesses in Oman Need to Know
Gold prices remained mostly steady on Thursday, supported by dovish signals from the Federal Reserve but restrained by a strong US dollar ahead of important inflation data. Silver prices stayed near record highs.
Spot gold fell slightly by 0.2% to $4,333.12 per ounce as of 0652 GMT, following a more than 1% gain late Wednesday. US gold futures also declined by 0.2%, settling at $4,363.60.
The dollar index maintained its earlier gains after reaching a near one-week high in the previous session, limiting further gains for gold priced in dollars.
Spot silver increased marginally by 0.1% to $66.36 per ounce after hitting a record peak of $66.88 on Wednesday. Silver prices have surged roughly 130% year to date, outpacing gold’s 65% rise, driven by strong industrial demand and tightening supplies.
Analysts predict silver could reach $70 per ounce next year if US interest rate cuts continue.
Federal Reserve Governor Christopher Waller stated that the central bank still has room to cut rates amid a cooling labor market and emphasized its commitment to maintaining independence.
Recent data showed the US unemployment rate rose to 4.6% in November, the highest since September 2021.
The Fed delivered its third and final quarter-point rate cut of the year last week, with markets anticipating two more 25-basis-point cuts in 2026.
Investors are closely watching the US Consumer Price Index scheduled for release later Thursday and the Personal Consumption Expenditures price index due on Friday.
Meanwhile, platinum prices saw a sharp rise today.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The steady gold prices amid a resilient dollar and dovish Fed signals highlight a cautious yet optimistic outlook for precious metals. For businesses in Oman, this suggests an opportunity to hedge against inflation and currency risks by investing in gold and silver, especially as silver shows strong industrial demand and potential upside. Smart investors and entrepreneurs should monitor US inflation data closely, as further Fed rate cuts in 2026 could drive precious metal prices higher, creating strategic entry points for diversifying portfolios and industrial applications.
