Gold Prices Ease Slightly on December 18 as Markets Brace for Key U.S. Inflation Data

Limassol, Cyprus — December 18, 2025 — Gold prices edged lower on Thursday, pausing after a strong multi‑session rally as global markets turned cautious ahead of critical U.S. inflation readings that could shape the Federal Reserve’s next policy move. Spot gold slipped 0.04% to $4,336/oz in early trade, while domestic futures in India also traded marginally weaker at ₹134,500 per 10 grams.

Despite the mild pullback, bullion remains close to record highs, supported by persistent safe‑haven demand, geopolitical tensions, and expectations of U.S. rate cuts in 2026.

Market Sentiment Turns Cautious Ahead of CPI and PCE Data

Traders are closely watching the release of the U.S. Consumer Price Index (CPI) for November, followed by the Personal Consumption Expenditures (PCE) inflation report later this week. Both indicators are considered pivotal for assessing whether the Federal Reserve will accelerate its shift toward monetary easing.

According to analysts, softer‑than‑expected inflation readings could reinforce the case for rate cuts, a scenario historically supportive for gold prices due to lower opportunity costs of holding non‑yielding assets.

India Gold Prices Reflect Global Softness

Gold rates across major Indian cities also eased, mirroring the global trend. In Delhi, 24‑karat gold traded at ₹13,499 per gram, while 22‑karat gold stood at ₹12,375 per gram. Similar price patterns were observed in Mumbai, Bengaluru, Chennai, and Kolkata.

Silver, which has outperformed gold in recent weeks, also cooled slightly after touching fresh record highs earlier in the week.

Analysts: Volatility Likely to Persist

Market experts warn that gold may continue to trade in a tight range until inflation data provides clearer direction. However, the broader trend remains bullish.

Gold has delivered its strongest two‑year performance since the 1979 oil crisis, with prices doubling amid geopolitical uncertainty, weakening U.S. macro data, and robust investment demand, according to Motilal Oswal Financial Services.

The rupee’s recent stability, trading near 90.41 per USD, has also contributed to steadier domestic bullion prices.

Key Drivers to Watch This Week

• U.S. CPI and PCE inflation data

• Federal Reserve rate‑cut expectations for 2026

• Bank of Japan policy decision, expected to raise rates to a 30‑year high

• Geopolitical tensions, including Venezuela and Russia–Ukraine developments

• ETF flows and institutional positioning

Outlook: Gold Remains Supported Despite Short‑Term Pullbacks

While intraday volatility is expected, analysts maintain a constructive long‑term outlook. Dovish signals from the Federal Reserve, combined with elevated geopolitical risk, continue to underpin gold’s appeal as a safe‑haven asset.

Silver is also expected to remain strong, driven by industrial demand and ongoing supply constraints.