Gold steadies near record as traders gear up for inflation data

Bullion has climbed nearly 40% this year — making it one of the best performing major commodities — on concerted central-bank buying, geopolitical uncertainties, and concerns about the impact of US tariffs on the global economy

Gold steadied just below a record after a surprise drop in US producer prices supported the case for the Federal Reserve to ease policy.

Bullion held near $3,642 an ounce, about $32 below the peak set earlier this week. US producer prices unexpectedly fell for the first time in four months, supporting traders’ bets that US borrowing costs will be reduced next week. The next data point to watch will be consumer price figures later Thursday.

Traders now view a quarter-point reduction at the Fed’s Sept. 16-17 meeting as a lock, with perhaps two more such steps to follow by the year-end, as policymakers seek to support the economy following a run of weak labor market data. Lower rates tend to benefit gold as it doesn’t yield interest.

Bullion has climbed nearly 40% this year — making it one of the best performing major commodities — on concerted central-bank buying, geopolitical uncertainties, and concerns about the impact of US tariffs on the global economy. Rising speculation about US rate cuts has prompted investors to pile into gold-backed exchange-traded funds, helping to lift prices.

President Donald Trump’s bid to influence the Fed’s decision-making has also aided gold as a haven. The US leader has appealed a judge’s decision that allowed Governor Lisa Cook to stay on the post during a legal battle, with Trump seeking to remove her for allegations of mortgage fraud.

Gold was little changed at $3,642.21 an ounce at 9:54 a.m. in Singapore, after ending 0.4% higher on Wednesday. The Bloomberg Dollar Spot Index was flat. Silver steadied above $41 an ounce, after rallying by 42% this year. Platinum and palladium were flat.

In industry news, Barrick Mining Corp. agreed to sell its last gold mine in Canada to Carcetti Capital Corp. for up to $1.1 billion, with one of the world’s biggest bullion producers seeking to capitalize on surging prices. Proceeds from the sale will be used to strengthen the company’s balance sheet, and support its commitment to return capital to shareholders, it said.