FX.co ★ Gold Remains Close to Record Levels

Gold prices fell to approximately $4,610 per ounce on Thursday, maintaining proximity to historic highs, as markets evaluated the potential extent of US rate cuts amidst ongoing global uncertainties. Both headline and core November producer price data were softer than expected, reinforcing earlier indications from a subdued December consumer inflation report. These reports bolstered the outlook that the Federal Reserve might have the leeway to enact several rate cuts this year. Nevertheless, some policymakers remain cautious, highlighting that inflation pressures could be more challenging to mitigate fully. Concurrently, concerns about the Fed's independence lingered as central bank leaders worldwide expressed support for Chair Powell following potential legal threats from the Trump administration. In terms of geopolitics, President Trump indicated the possibility of delaying action against Iran, alleviating fears of an imminent US military strike, which marginally affected the precious metal's status as a safe haven.