Gold Prices Steady as Fed Rate Cut Bets Grow; Markets Await Trump-Putin Talks
Gold prices held steady in Asian trading on Wednesday, supported by softer U.S. inflation data that boosted expectations for a Federal Reserve interest rate cut in September. Investors are also closely watching an upcoming U.S.-Russia meeting later this week.
Spot gold was little changed at $3,348.87 per ounce, while December gold futures hovered at $3,398.42 by 01:59 ET (05:59 GMT).
The yellow metal faced pressure earlier in the week after President Donald Trump announced that gold bars would not be subject to tariffs, easing supply concerns.
US CPI Data Supports Rate Cut Outlook
U.S. Consumer Price Index (CPI) data released Tuesday showed prices rising 0.2% in July, down from 0.3% in June, while annual inflation eased to 2.7%, nearing the Fed’s 2% target.
Economists noted that the slower pace of price growth strengthens the case for a September interest rate cut, with markets now pricing in over a 90% probability of a 25 basis point reduction.
Lower interest rates generally enhance the appeal of non-yielding assets like gold, as the opportunity cost of holding bullion decreases.
Geopolitical Focus on Trump-Putin Summit
Gold’s upside was limited by geopolitical developments, as traders await Friday’s high-profile summit between President Trump and Russian President Vladimir Putin in Anchorage.
Talks will center on the war in Ukraine, with a potential ceasefire on the agenda. A breakthrough could reduce gold’s safe-haven demand, while stalled negotiations may have the opposite effect.
Trump’s move to extend the U.S.-China tariff truce for another 90 days also eased safe-haven buying in precious metals.
Precious Metals Mixed, Silver Gains
In other metals, platinum futures were steady at $1,351.00/oz, while silver futures rose 0.5% to $38.240/oz.
On the industrial side, benchmark copper futures in London edged up 0.1% to $9,842.65 a ton, and U.S. copper futures were flat at $4.519 a pound.
