Sept 11 (Reuters) - Gold prices pared losses on Thursday, holding at near-record highs as soft U.S. jobs data outweighed concerns from firmer inflation data, with investors still betting on the Federal Reserve easing interest rates next week.
Spot gold was down 0.2% at $3,633.48 per ounce, as of 11:41 a.m. EDT (1541 GMT). Bullion had hit a record high of $3,673.95 on Tuesday. U.S. gold futures for December delivery fell 0.2% to $3,673.20.
"Gold is being 'saved' by the sharp jump in weekly initial jobless claims, which hit a three-year high at 263,000 while core CPI remains elevated at 0.3% month-on-month," said Tai Wong, an independent metals trader.
Recent price movements point to some buyer fatigue, but gold's outlook over the next few months remains constructive, limiting the scope for a significant pullback, Wong added.
U.S. consumer prices rose more than expected in August, recording the largest annual increase in seven months, while weekly jobless claims also jumped sharply, highlighting softening labor market conditions.
Data on Thursday showed U.S. producer prices unexpectedly declined in August, reflecting weaker trade services margins and muted goods costs.
Coupled with last week's soft nonfarm payrolls, along with revisions that revealed 911,000 fewer jobs in the 12 months through March, the figures pointed to cooling underlying momentum in the economy and added weight to expectations for Fed easing.
Markets are fully pricing in a 25-basis-point cut at the Fed's policy meeting next Wednesday, with a slim chance of a half-point cut, CME FedWatch data, opens new tab showed. The central bank paused its easing cycle in January as it weighed the inflationary impact of tariffs.
The yellow metal has climbed 38% so far this year and is often seen as thriving in lower-rate settings, valued by investors as a hedge against inflation and broader uncertainty.
Slowing growth, elevated inflation, geopolitical shifts and diversification away from U.S. assets and the dollar will continue to underpin investment demand and central bank buying, supporting gold, ANZ said in a note.
Elsewhere, spot silver was up 0.7% at $41.44 per ounce. Platinum fell 0.1% to $1,384.03 and palladium gained 1.3% to $1,188.25.
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber
