Gold holds near records ahead of crucial US inflation data release

Gold futures maintain positions near record highs as traders await pivotal US inflation data that could influence Federal Reserve monetary policy decisions. The precious metal's strength reflects persistent inflation concerns and geopolitical uncertainties supporting safe-haven demand. EUR/USD and USD/JPY showed subdued trading ahead of the key economic release, with currency markets adopting a wait-and-see approach. The Dollar Index displayed minor fluctuations as investors balanced inflation expectations against potential Fed responses. Market participants are particularly focused on whether inflation data will support continued Fed hawkishness or signal potential policy moderation. Gold's resilience near all-time highs suggests underlying bullish sentiment remains intact, with investors hedging against both inflation risks and geopolitical uncertainties. Technical indicators point to continued support above key levels, though a surprising inflation print could trigger volatility across precious metals and currency markets.