Gold and silver prices slipped on Friday as U.S. inflation data came in softer than expected, reducing bullion’s appeal as an inflation hedge, while a stronger U.S. dollar weighed on precious metals. Investors also awaited further economic indicators for clues on Federal Reserve policy, particularly the PCE price index.
Spot gold edged lower, retreating from recent multi-week highs with prices dipping on both MCX and global markets. Silver futures likewise eased after recent record-high sessions, though prices remain elevated on strong year-to-date gains.
The dollar’s firm stance makes bullion more expensive for holders of other currencies, dampening demand in the short term. Softer U.S. CPI figures, which showed consumer prices rising less than economists forecast, support expectations for future rate cuts, but the immediate effect has been to reduce gold’s attractiveness as a hedge against inflation.
Overall, the pullback in precious metals comes amid profit-taking and technical consolidation following extended rallies, even as longer-term drivers such as rate-cut expectations and safe-haven demand continue to influence market sentiment.
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