Gold prices rose slightly in Thursday’s Asian trading session, as hopes for a potential Federal Reserve interest rate cut next month buoyed the market. Investors also turned their attention to the upcoming U.S.-Russia talks.
Spot gold climbed 0.2% to $3,361.87 per ounce, while December gold futures remained relatively stable at $3,409.65/oz by 01:19 ET (05:19 GMT).
The gains mark the third consecutive day of upward movement for gold following a sharp decline earlier in the week, after President Donald Trump stated that gold bars would not be subject to tariffs.
Rate cut expectations and geopolitical developments under the spotlight
Tuesday’s data showed U.S. consumer price growth largely in line with expectations, prompting analysts to note that the full effect of tariff-driven price increases has yet to be felt across the economy.
“The mild data strengthened the case for the Fed to cut its benchmark interest rate at its September meeting,” according to analysts, with markets now pricing in a 95% likelihood of a reduction next month.
Lower rates reduce the opportunity cost of holding non-yielding assets such as gold, increasing its appeal to investors.
Traders are also awaiting U.S. producer price data for final demand and weekly jobless claims for the week ending August 9, which are set to be released later in the day.
Gold’s advance was tempered by geopolitical uncertainty, as investors closely watch Friday’s summit in Anchorage between U.S. President Donald Trump and Russian President Vladimir Putin.
Trump on Wednesday warned of “severe consequences” for Russia if Vladimir Putin blocked progress toward peace in Ukraine prior to the meeting.
A constructive outcome could reduce demand for gold as a safe-haven asset, whereas any signs of failed talks or rising tensions could lift bullion prices.
Other metals see limited movement
Platinum futures fell 0.2% to $1,346.65/oz, while silver futures rose slightly by 0.1% to $38.645/oz.
Copper markets were largely unchanged, with London Metal Exchange copper futures at $9,805.65 per ton and U.S. copper futures flat at $4.50 a pound.
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