Gold prices edged lower in Asian trading on Thursday, with investors adopting a cautious stance ahead of pivotal U.S. inflation figures that could define the Federal Reserve’s policy direction. Despite the dip, bullion remained close to record highs as firm bets on a September rate cut and concerns over Fed independence underpinned safe-haven demand.

Market Snapshot

• Spot Gold: down 0.4% to $3,627.59/oz (02:04 ET)
• U.S. Gold Futures (Dec): down 0.5% to $3,664.30/oz
• Recent Peak: $3,673.95/oz earlier this week

Fed Rate Cut Bets in Focus

Weaker-than-expected U.S. producer price index data and significant downward revisions to job creation figures reinforced the view of a cooling labor market. This has strengthened expectations of a 25-basis-point rate cut at the Fed’s September 16-17 meeting, with some traders even positioning for a larger move.

Attention now turns to consumer price index (CPI) data, due later on Thursday. Economists expect a 0.3% monthly increase and an annual reading of 2.9%. Any upside surprise could cool momentum for gold by tempering expectations for aggressive easing.

Fed Independence Concerns

Uncertainty surrounding the Federal Reserve’s independence has further fueled demand for gold. A federal judge recently blocked President Donald Trump’s attempt to remove Fed Governor Lisa Cook, raising alarm over political interference in monetary policy. The White House has appealed the decision, keeping investor nerves heightened.

Gold tends to benefit from such uncertainty, as well as from lower rates, which reduce the opportunity cost of holding non-yielding assets.

Broader Metals Market

• Silver Futures: up 0.2% to $41.67/oz
• Platinum Futures: down 0.5% to $1,008.20/oz
• LME Copper Futures: down 0.2% to $9,987.30/ton
• COMEX Copper: flat at $4.61/lb