Gold price climbs during the North American session on Wednesday, up by 0.30% as investors continue to increase their bets that the Federal Reserve (Fed) will reduce interest rates at the September meeting. At the time of writing, XAU/USD trades at $3,357, above a key technical support level.

The latest inflation report in July showed mixed readings as the headline Consumer Price Index (CPI) remained unchanged, while core figures rose. Nevertheless, traders seem convinced that the Fed Chair Jerome Powell and Co. will resume its easing cycle in September.

Voices within the Trump administration echoed some of the US President's demands to the Fed to lower rates. The Treasury Secretary Scott Bessent said the Fed should start cutting 50 basis points (bps) at the next meeting, adding that rates should be between 150 to 175 bps lower.

In the meantime, European and Ukrainian leaders were set to talk with Trump, before the Russian President Vladimir Putin meets him in Alaska to discuss a truce in Ukraine. Regarding trade talks, Washington and Beijing extended their trade truce by 90 days.

The lack of economic data left traders adrift, with Federal Reserve officials crossing the wires, led by Chicago Fed President Austan Goolsbee and Atlanta's Raphael Bostic.

Traders will eye further data releases as the US schedule remains busy. Ahead awaits PPI data, Jobless Claims for the week ending August 9, Retail Sales, and the University of Michigan Consumer Sentiment index.

Source: Fxstreet