Gold prices inched upward during Asian trading on Thursday, buoyed by investor hopes for a Federal Reserve interest rate cut next month, as markets also awaited the upcoming U.S.-Russia discussions.
Spot gold rose 0.2% to $3,361.87 per ounce, while December gold futures were largely flat at $3,409.65/oz as of 01:19 ET (05:19 GMT).
The precious metal has climbed for a third straight day following a steep early-week drop, after President Donald Trump announced that gold bars would not face tariffs.
Fed rate cut expectations provide support; geopolitical focus grows
Data released on Tuesday showed the U.S. consumer price index largely matching forecasts, with analysts noting that the effect of tariff-related price increases is not fully reflected in the economy.
“The mild data strengthened the case for the Fed to cut its benchmark interest rate at its September meeting,” said market analysts, with futures now implying a 95% chance of a reduction next month.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more appealing to investors.
Attention now turns to U.S. producer price figures for final demand and weekly jobless claims for the week ending Aug. 9, both due later in the day.
Gold’s gains were moderated by geopolitical concerns, with traders closely monitoring Friday’s summit in Anchorage between President Donald Trump and Russian President Vladimir Putin.
Trump on Wednesday cautioned of “severe consequences” for Russia if Vladimir Putin blocked progress toward peace in Ukraine ahead of the summit.
A positive outcome could lessen demand for gold as a safe-haven asset, while any signs of stalled talks or rising tensions might drive prices higher.
Other metals remain quiet
Elsewhere in the metals market, platinum futures slipped 0.2% to $1,346.65/oz, while silver futures inched up 0.1% to $38.645/oz.
Copper remained steady, 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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