Gold prices were little changed in Asian trade on Wednesday, supported by mild U.S. inflation data that lifted hopes for Federal Reserve easing, while investors looked ahead to U.S.-Russia talks due later this week.
Spot Gold was largely unchanged at $3,348.87 an ounce, while Gold Futures for December were also muted at $3,398.42/oz by 01:59 ET (05:59 GMT).
Gold prices fell sharply at the start of the week after President Donald Trump said gold bars would not face tariffs, easing supply concerns.
US CPI lifts Fed rate cut bets; Trump-Putin talks eyed
Data on Tuesday showed the U.S. consumer price index (CPI) rose 0.2% in July from the prior month, easing from a 0.3% increase in June. The annual inflation rate slowed to 2.7%, close to the Fed’s 2% target.
Economists said the figures suggest inflationary pressures are cooling, strengthening the case for the central bank to cut its benchmark interest rate at its September meeting.
Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making bullion more attractive to investors.
Markets now price in a more than 90% probability of a September cut.
However, gold’s advance was tempered by geopolitical developments, with traders closely watching Friday’s summit between Trump and Russian President Vladimir Putin in Anchorage.
The meeting will focus on the Ukraine war, and market participants are weighing the possibility of proposals for a ceasefire.
A constructive outcome could reduce demand for gold as a safe-haven asset, although any signs of failed negotiations or heightened tensions could have the opposite effect.
Trump’s extension of the U.S.–China tariff truce by another 90 days also reduced the safe-haven allure of gold.
Metal markets subdued, silver gains
Other precious metals were subdued on Wednesday, as was the U.S. dollar after a sharp decline in the previous session.
Platinum Futures were largely unchanged at $1,351.00/oz, while Silver Futures gained 0.5% to $38.240/oz.
Benchmark Copper Futures on the London Metal Exchange edged up 0.1% to $9,842.65 a ton, while U.S. Copper Futures traded flat at $4.519 a pound.
Source :
https://www.investing.com/news/commodities-news/gold-prices-steady-amid-fed-rate-cut-hopes-trumpputin-talks-awaited-4187129
