Gold edged higher on Wednesday (August 13th), supported by a weaker dollar after weak US inflation data reinforced speculation of a September interest rate cut, while investors focused on this week's US-Russia talks on the war in Ukraine.
Spot gold rose 0.2% to $3,351.46 per ounce, as of 02:39 GMT. US gold futures for December delivery rose 0.1% to $3,401.60. "The weaker USD is allowing for a modest rise in gold prices, with the precious metal oscillating around the $3,350 level ahead of the Trump-Putin meeting on Friday," said Tim Waterer, chief market analyst at KCM Trade.
"If the Alaska meeting doesn't resolve anything and the war in Ukraine continues, gold could push back towards $3,400." The summit between US President Donald Trump and Russian President Vladimir Putin "was a listening exercise for the president," the White House said on Tuesday, dampening expectations of a quick Russia-Ukraine ceasefire agreement.
Data released on Tuesday showed that the US Consumer Price Index (CPI) rose 0.2% in July, following a 0.3% increase in June. Year-on-year, the CPI rose 2.7%. The dollar index continued its decline, making US dollar-denominated assets more affordable for holders of other currencies.
Markets are pricing in a roughly 90% chance the Federal Reserve will cut interest rates in September, with at least one additional rate cut expected by the end of the year. Non-yielding gold thrives in a low-interest environment. Easing trade tensions in the market, the United States and China have extended a tariff truce for another 90 days, preventing the imposition of triple-digit tariffs on each other's goods.
Investors are now looking ahead to other US economic data due later this week, including the US Producer Price Index, weekly jobless claims, and retail sales. Elsewhere, spot silver rose 0.7% to $38.14 per ounce, platinum rose 0.4% to $1,341.80, and palladium rose 0.3% to $1,132.89. (alg)
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...