Gold down on firm dollar ahead of US inflation data

Gold prices slipped on Thursday, weighed down by a stronger dollar as investors remained cautious ahead of US inflation data that could shape the Federal Reserve's policy path, while silver hovered near record highs, reports Reuters.

Spot gold fell 0.4 per cent to $4,323.57 an ounce as of 1210 GMT. US gold futures also eased 0.4 per cent to $4,356.10.

The dollar index edged up after touching a nearly one-week high on Wednesday, making greenback-priced bullion more expensive for overseas buyers.

Spot silver fell 0.1 per cent to $66.19 an ounce, after hitting a record high of $66.88 in the previous session.

"The slightly stronger dollar is a headwind for both (gold and silver)... some cautious investors are preferring to be on the safe side and not running into the (inflation) report with an open position," said UBS analyst Giovanni Staunovo.

The white metal, however, is up 129 per cent so far this year on stronger industrial demand and an ongoing supply deficit.

US President Donald Trump said on Wednesday the next Fed chairman will be someone who believes in lower interest rates "by a lot." Trump will announce the successor to current Fed Chair Jerome Powell early next year.