Gold prices remained unchanged on Wednesday, as investors anticipated important inflation reports scheduled for later this week. Meanwhile, the prospect of a U.S. interest rate cut this month contributed to maintaining bullion above the significant $3,600-per-ounce threshold. Spot gold maintained its position at $3,624.39 per ounce, as of 0101 GMT, following a record high of $3,673.95 reached on Tuesday.

U.S. gold futures for December delivery decreased by 0.5%, settling at $3,662.30. The dollar index extended its gains against rival currencies, rebounding from a seven-week low hit in the previous session and making gold more expensive for other currency holders. U.S. 10-year Treasury yields increased from a five-month low. Focus now shifts to U.S. producer price inflation data, due later in the day, followed by consumer price inflation reading on Thursday for more cues on the Federal Reserve’s interest rate trajectory.

The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said on Tuesday, suggesting that job growth was already stalling before U.S. President Donald Trump’s aggressive tariffs on imports. U.S. nonfarm payroll data released last week indicated a deterioration in labor market conditions, reinforcing the argument for a Federal Reserve rate cut in the upcoming week. Markets are fully pricing in a 25-basis-point rate cut next week, while the likelihood of a larger 50-basis-point cut stands at around 8%. Non-yielding gold typically performs well in a low-interest-rate environment.

Gold prices have gained 38% so far this year, following a 27% jump in 2024, bolstered by a soft dollar, strong central bank accumulation, dovish monetary settings, and heightened global uncertainty. Elsewhere, spot silver fell 0.3% to $40.77 per ounce. Platinum increased by 0.2%, reaching $1,370.44, while palladium experienced a decline of 0.8%, settling at $1,138.817.