Pound (GBPUSD=X)

The pound ebbed lower against the dollar in early European trading on Thursday, falling to $1.2688 to trade near its lowest point since the global markets sell-off in August.

This comes as investors continued to digest the latest US inflation data released on Wednesday, which showed consumer prices rose as forecast in October.

The latest Bureau of Labour Statistics data showed that the consumer prices index (CPI) rose by 2.6% over the year to October. While this did match economist expectations, it was still slightly higher than September's 2.4% reading.

Dan Coatsworth, investment analyst at AJ Bell, said: "US inflation is proving to be stickier than a toffee apple."

However, he added that the data came in "exactly as predicted which means the argument for the Federal Reserve to make another cut to interest rates isn’t going to go away".

Coatsworth said that the market has 84.8% probability of a quarter-point interest rate cut at its next meeting on 18 December.

Read more: FTSE 100 LIVE: Stocks lower as Reeves set to announce UK pensions megafunds plan

The US Dollar Index (DX-Y.NYB), a benchmark tracking the dollar’s strength against a basket of six major currencies, remained strong at 106.63, holding onto recent gains.

Against the euro (GBPEUR=X), sterling edged slightly higher, to trade at €1.2026. The euro has been weaker, falling to $1.054 against the dollar (EURUSD=X) amid concerns of potential tariff hikes following Donald Trump's US election victory and the impact on the eurozone economy.

In addition, political uncertainty Germany, Europe's largest economy, with a snap election set for February, continues to weigh on the euro.

Gold (GC=F)

Gold prices fell on Thursday morning, as a stronger dollar continued to put pressure on the precious metal.

Spot gold dipped 0.7% to $2,555.06 per ounce, while US gold futures fell by 0.9% to $2,562.90, both falling below the $2,600 mark to the lowest point since September.

The rise in the dollar has weighed on gold, given that the precious metal tend to be priced in the US currency.

Read more: FTSE 100 winners and losers following Trump's US election win

A rally in markets following Trump's election win signalled greater investor confidence, which weighed on safe havens assets such as gold.

However, there is still uncertainty around Trump's proposed trade tariffs, including concerns that this could push up inflation and broader repercussions for global economic stability, which could dampen risk appetite.

This concern, coupled with restrained fiscal stimulus from China, has lent some support to gold, as investors seek refuge in the precious metal amid broader market uncertainties.