Gold Prices Edge Higher on Fed Rate Cut Hopes; Investors Await US-Russia Talks
Gold prices rose slightly in Asian trading on Thursday, supported by growing expectations of a U.S. Federal Reserve interest rate cut next month. Markets are also watching closely for the outcome of upcoming U.S.-Russia talks.
Spot gold gained 0.2% to $3,361.87 an ounce, while December gold futures held steady at $3,409.65 by 01:19 ET (05:19 GMT). This marks gold’s third straight daily increase, recovering from a sharp drop earlier in the week after President Donald Trump announced that gold bars would be exempt from tariffs.
Fed Rate Cut Bets Support Gold
Tuesday’s U.S. consumer price index data came in largely as expected, with analysts noting that the full effect of tariff-related price increases has yet to appear. The data strengthened the case for the Fed to cut rates in September, with markets now pricing in a 95% chance of a reduction.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, boosting demand for bullion. Investors are also awaiting producer price index figures and weekly jobless claims data, both due later on Thursday.
Geopolitical Focus on Trump-Putin Summit
Gold’s gains were capped by geopolitical uncertainty ahead of Friday’s summit between President Trump and Russian President Vladimir Putin in Anchorage. Trump warned of “severe consequences” if Russia fails to make progress toward peace in Ukraine.
A positive outcome could reduce safe-haven demand for gold, while failed talks or heightened tensions could push prices higher.
Other Metals See Mixed Trading
Platinum futures slipped 0.2% to $1,346.65 an ounce. Silver futures inched 0.1% higher to $38.645 an ounce. Benchmark copper futures on the London Metal Exchange were steady at $9,805.65 a ton, while U.S. copper futures traded flat at $4.50 a pound.
