Gold Prices Decline as U.S. Dollar Strengthens; Investors Await Key Inflation Data for Fed Policy Clues

Gold prices experienced a decline of over 1% on Thursday, reaching their lowest level in more than a week, as the U.S. dollar strengthened. Spot gold fell by 1.2% to $2,880.79 an ounce, marking its lowest point since February 17, after hitting a record peak of $2,956.15 on Monday. U.S. gold futures also decreased by 0.7% to $2,909.30. The dollar index rose by 0.2%, moving further away from recent 11-week lows, which made dollar-priced bullion more expensive for holders of other currencies. Market participants are closely monitoring U.S. monetary policy, with attention focused on upcoming speeches by several officials and the Personal Consumption Expenditures (PCE) index due on Friday. Markets anticipate that the Federal Reserve will implement at least two rate cuts this year, with approximately 55 basis points of easing priced in for 2025. Spot silver retreated 0.7% to $31.62 an ounce, platinum added 0.2% to $967.30 and palladium firmed 0.1% to $927.50.