2025-08-13T06:04:11+00:00

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Shafaq News

Gold edged
higher on Wednesday, supported by a weaker dollar after mild US inflation data
cemented bets for an interest rate cut in September, while investors awaited
this week’s US-Russia talks over the war in Ukraine.

Spot gold was
up 0.2% at $3,351.46 per ounce, as of 0447 GMT. US gold futures for December
delivery were steady at $3,399.60.

“The
fall in the USD enabled a moderate bounce in the gold price, 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
meeting in Alaska doesn’t resolve anything and the war in Ukraine continues,
gold could be making a push back towards $3,400 once again.”

The summit
between US President Donald Trump and Russian President Vladimir Putin “is
a listening exercise for the president,” the White House said on Tuesday,
tempering expectations for a quick Russia-Ukraine ceasefire deal.

Data released
on Tuesday showed that the US Consumer Price Index (CPI) rose 0.2% in July,
following a 0.3% increase in June. On a year-over-year basis, the CPI climbed
2.7%.

The dollar
index extended declines, making greenback-denominated assets more affordable to
holders of other currencies.

Markets are
pricing in about a 90% chance of a Federal Reserve rate cut in September, with
at least one additional reduction expected by the end of the year. Non-yielding
gold thrives in a low-interest-rate environment.

Easing trade
tensions in the market, the United States and China have extended a tariff truce for another 90 days, staving off
triple-digit duties on each other’s goods.

Investors are
now awaiting more US economic data due later this week, including the US
Producer Price Index, weekly jobless claims, and retail sales.

Elsewhere,
spot silver rose 0.8% to $38.17 per ounce, platinum eased 0.1% to $1,335.82 and
palladium was flat at $1,129.37.

(Reuters)

Only the headline is edited by Shafaq News Agency.