Gold prices edged higher in Asian trade on Thursday, lifted by hopes for a Federal Reserve rate cut next month, while investors awaited U.S.-Russia talks due this week.
Spot Gold edged 0.2% higher to $3,361.87 an ounce, while Gold Futures for December were largely steady at $3,409.65/oz by 01:19 ET (05:19 GMT).
Gold prices ticked higher for the third consecutive day after a sharp decline at the start of the week, when President Donald Trump said gold bars would not face tariffs.
Gold supported by Fed rate cut bets; Trump-Putin talks eyed
Data on Tuesday showed the U.S. consumer price index rising largely in line with expectations, with analysts suggesting the impact of tariff-driven price increases is yet to be filtered through the economy.
The mild data strengthened the case for the Fed to cut its benchmark interest rate at its September meeting. Markets now price in a 95% probability of a reduction next month.
Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making bullion more attractive to investors.
Investors now await a separate gauge of producer prices for final demand, and weekly jobless claims data for the period ended Aug. 9, both due later in the day.
Gold’s advance was also tempered by geopolitical developments, with traders closely watching Friday’s summit between President Donald Trump and Russian President Vladimir Putin in Anchorage.
Trump on Wednesday warned of “severe consequences” for Russia if Vladimir Putin blocked progress toward peace in Ukraine ahead of their scheduled summit.
A constructive outcome could reduce demand for gold as a safe-haven asset, although any signs of failed negotiations or heightened tensions could boost bullion prices.
Other metal markets remain subdued
Other precious metals were also subdued on Thursday.
Platinum Futures dipped 0.2% to $1,346.65/oz, while Silver Futures edged 0.1% higher to $38.645/oz.
Benchmark Copper Futures on the London Metal Exchange were largely unchanged at $9,805.65 a ton, while U.S. Copper Futures also traded flat at $4.50 a pound.
