Gold prices edged higher on Wednesday, lifted by a weaker US dollar after mild inflation data strengthened expectations for a Federal Reserve interest rate cut in September. Investors are also closely watching the upcoming US–Russia talks over the ongoing war in Ukraine.
Gold Holds Near $3,350
As of 04:47 GMT, spot gold was up 0.2% at $3,351.46 per ounce. US gold futures for December delivery stayed flat at $3,399.60.
Tim Waterer, chief market analyst at KCM Trade, noted that the softer dollar “enabled a moderate bounce in gold prices, keeping them near the $3,350 level ahead of the Trump–Putin meeting on Friday.” He added that if the Alaska summit fails to produce progress and the Ukraine conflict continues, prices could push back toward $3,400.
Market Eyes US–Russia Summit
The White House described the planned meeting between US President Donald Trump and Russian President Vladimir Putin as “a listening exercise,” lowering hopes for an immediate ceasefire deal.
Inflation Data Pressures the Dollar
US Consumer Price Index (CPI) data released Tuesday showed prices rose 0.2% in July, following a 0.3% increase in June. On a yearly basis, CPI climbed 2.7%.
The dollar index fell after the report, making gold — priced in dollars — more affordable for buyers using other currencies.
Fed Rate-Cut Bets Strengthen
Markets now price in a 90% probability of a September rate cut, with another likely before year-end. Gold often benefits in a low-interest-rate environment as it offers no yield but retains value.
Trade Tensions Ease
In a separate boost to market sentiment, the United States and China extended their tariff truce for another 90 days, delaying steep new import duties.
Key US Data Ahead
Investors are awaiting more US economic reports this week, including the Producer Price Index (PPI), weekly jobless claims, and retail sales.
Other Precious Metals
- Silver gained 0.8% to $38.17 per ounce
- Platinum dipped 0.1% to $1,335.82
- Palladium was unchanged at $1,129.37
Make money without lifting your fingers: Start using a world-class auto trading solution.EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
