Gold remained largely steady in Asian trading on Wednesday, buoyed by modest U.S. inflation data that fueled expectations of a Federal Reserve rate cut, while markets turned their attention to an upcoming U.S.-Russia meeting.
Spot gold traded mostly unchanged at $3,348.87 per ounce, with December gold futures also muted at $3,398.42/oz as of 01:59 ET (05:59 GMT).
Earlier in the week, gold had dipped sharply after President Donald Trump confirmed that gold bars would not be subject to tariffs, easing concerns about supply disruptions.
U.S. Inflation Data Boosts Odds of Fed Rate Cut
Tuesday’s release showed the U.S. consumer price index (CPI) rose 0.2% in July compared to June, down from a 0.3% increase the previous month. The annual inflation rate slowed to 2.7%, nearing the Federal Reserve’s 2% target.
Economists noted that the data indicate easing inflationary pressures, strengthening the case for a potential reduction in the Fed’s benchmark interest rate at its September meeting.
Lower rates reduce the cost of holding non-yielding assets like gold, making bullion more appealing to investors. Current market pricing implies more than a 90% chance of a September rate cut.
Trump-Putin Meeting in Focus
Geopolitical developments tempered gold’s upward momentum, with traders closely monitoring the planned Friday summit between Trump and Russian President Vladimir Putin in Anchorage.
The talks are expected to address the Ukraine conflict. Analysts say a constructive outcome could lessen demand for gold as a safe-haven asset, whereas any signs of failed negotiations or rising tensions might spur investors back into bullion.
Trump’s extension of the U.S.–China tariff truce by another 90 days also reduced gold’s safe-haven appeal.
Other Metals Remain Muted
Precious metals broadly showed limited movement on Wednesday, mirroring a subdued U.S. dollar following a sharp decline in the previous session.
Platinum futures were largely unchanged at $1,351.00/oz, while silver futures gained 0.5% to $38.24/oz.
On the copper front, London Metal Exchange copper futures inched up 0.1% to $9,842.65 per ton, while U.S. copper futures remained flat at $4.519 per pound.
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