Gold prices remained largely steady in Asian trading on Wednesday, supported by moderate U.S. inflation data that reinforced bets on a potential Federal Reserve rate cut. Investors are also keeping an eye on the upcoming U.S.-Russia summit later this week.
Spot gold was virtually unchanged at $3,348.87 per ounce, while December gold futures held at $3,398.42/oz as of 01:59 ET (05:59 GMT).
Earlier in the week, gold experienced a sharp drop after President Donald Trump confirmed that gold bars would not be subject to tariffs, easing supply concerns.
U.S. Inflation Fuels Fed Rate Cut Speculation
Data released Tuesday showed that the U.S. consumer price index (CPI) increased by 0.2% in July from the previous month, down from June’s 0.3% rise. Yearly inflation slowed to 2.7%, approaching the Federal Reserve’s 2% target.
Economists noted the figures point to cooling inflationary pressures, which could support a rate cut by the Fed at its September meeting.
Lower interest rates make holding non-yielding assets like gold more attractive. Markets currently reflect over a 90% probability of a September rate reduction.
Trump-Putin Summit in Focus
Geopolitical developments moderated gold’s gains, with attention on Friday’s planned meeting between Trump and Russian President Vladimir Putin in Anchorage.
The discussions are expected to focus on the Ukraine conflict. Analysts say a successful outcome could reduce demand for gold as a safe haven, whereas stalled talks or heightened tensions may drive investors back to bullion.
Trump’s decision to extend the U.S.–China tariff truce by another 90 days also dampened gold’s appeal as a haven asset.
Other Metals See Little Movement
Other precious metals remained subdued. Platinum futures were flat at $1,351.00/oz, while silver futures gained 0.5% to $38.24/oz.
Copper prices showed minimal change, with London Metal Exchange copper futures edging up 0.1% to $9,842.65 per ton, and U.S. copper futures holding steady at $4.519 per pound.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.