Precious Metals Pare Losses After CPI Release

US stock futures have edged lower following a rally on Wall Street, which was buoyed by a softer Consumer Price Index (CPI) report. This development indicates a cautious market response as investors digest the implications of inflation data on future economic conditions.

Gold prices remained steady during the morning Asian session, buoyed by expectations of potential interest rate cuts from the Federal Reserve. This trend reflects a growing investor sentiment towards gold as a safe-haven asset amid economic uncertainties.

Gold and silver prices are hovering near record highs, buoyed by slower-than-expected inflation data from the US, which has reinforced expectations for further interest rate cuts by the Federal Reserve. Platinum is also approaching a 17-year peak, indicating strong demand across precious metals.

FedEx reported a higher second-quarter revenue, driven by an increase in package volumes, prompting the company to raise the lower end of its profit outlook for the fiscal year. This adjustment reflects a positive trend in demand for shipping services despite ongoing challenges in global trade dynamics.

The recent inflation report revealed significant data problems, particularly in calculating housing costs, which are a major component of the price index. These issues are expected to persist for several months, complicating economic assessments and forecasts.

Economists have indicated that the significant drop in November inflation is largely attributed to data challenges stemming from the recent government shutdown, rather than genuine shifts in economic conditions. This situation has complicated the accurate assessment of inflation metrics, particularly in housing costs, which constitute a major part of the price index.

KB Home reported a quarterly profit of $101.5 million, reflecting a decline in home deliveries amid a stagnant housing market that continues to impact its financial performance negatively. The company's results indicate ongoing challenges as it navigates a competitive landscape with reduced demand for new homes.

Consumer prices in the U.S. rose by 2.7% in November compared to the previous year, a decrease from the 3% increase recorded in September, according to a delayed report from the government. This slowdown in inflation reflects changing economic conditions and consumer behavior.