PRECIOUS-Gold gains as soft US data pressures dollar, fuels rate-cut bets
By Brijesh Patel
Aug 13 (Reuters) - Gold edged higher on Wednesday, supported by a weaker dollar after mild U.S. inflation data cemented bets for an interest rate cut in September, while investors awaited this week's U.S.-Russia talks over the war in Ukraine.
Spot gold XAU= was up 0.3% at $3,355.30 per ounce, as of 0651 GMT. U.S. gold futures GCcv1 for December delivery gained 0.2% to $3,405.50.
"The fall in the USD enabled a moderate bounce in the gold price, with the precious metal oscillating around the $3,350 level ahead of the Trump-Putin meeting on Friday," said Tim Waterer, chief market analyst at KCM Trade.
"If the meeting in Alaska doesn't resolve anything and the war in Ukraine continues, gold could be making a push back towards $3,400 once again."
The summit between U.S. President Donald Trump and Russian President Vladimir Putin "is a listening exercise for the president," the White House said on Tuesday, tempering expectations for a quick Russia-Ukraine ceasefire deal.
Data released on Tuesday showed that the U.S. Consumer Price Index (CPI) rose 0.2% in July, following a 0.3% increase in June. On a year-over-year basis, the CPI climbed 2.7%.
The dollar index =USD extended declines, making greenback-denominated assets more affordable to holders of other currencies.
Markets are pricing in about a 90% chance of a Federal Reserve rate cut in September, with at least one additional reduction expected by the end of the year. Non-yielding gold thrives in a low-interest-rate environment. 0#USDIRPR
Easing trade tensions in the market, the United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other's goods.
Investors are now awaiting more U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.
Elsewhere, spot silver XAG= climbed 1.2% to $38.35 per ounce, platinum XPT= gained 1% to $1,348.70 and palladium XPD= rose 0.8% to $1,138.04.
Reuters Terminal users can see related news and prices by clicking on the codes in brackets:
All precious metals headlines GOL
Precious metals market reports GOL/
European gold prices GOLD/EU1GOLD/EU20#PREC
London Bullion Market Association LBMA01
New York Comex gold 0#GC: and silver 0#SI:
New York platinum 0#PL: and palladium 0#PA:
Related Articles
Warren Buffett Q2 2025 13F Analysis: Betting on UnitedHealth Again After 14 Years
TradingKey - In Q2 2025, the value of Berkshire Hathaway’s investment portfolio declined from $259.8 billion in Q1 to $257.5 billion, a decrease of 0.89%. Analysis indicates that this drop is primarily driven by a net capital outflow of 0.78%. The outflow may be linked to changing market conditions
Applied Materials Q3 Earnings: AI Demand Soars, but Cautious Guidance Triggers After-Hours Selloff
TradingKey - Applied Materials, Inc. (NASDAQ: AMAT) announced its Q3 FY2025 earnings on August 14, 2025, after market close, reporting strong revenue fueled by AI-related semiconductor demand, which beat expectations. However, cautious Q4 guidance, including EPS below analyst estimates.jpg)
Bridgewater Associates Q2 2025 13F Analysis: Founder Ray Dalio’s Final Act
TradingKey - Bridgewater Associates, the world’s largest hedge fund and renowned for its macroeconomic analysis, continues to command market respect with its “risk parity” strategy and precise economic cycle timing.
U.S. July CPI Commentary: Obstacles Cleared, Where Will U.S. Stocks Go Next?
TradingKey - On 12 August 2025, the United States released its Consumer Price Index (CPI) data for July. In terms of headline inflation, the CPI rose by 2.7% year-on-year in the month, slightly lower than the expected 2.8%. However, core CPI climbed 3.1% year-on-year, edging past the projected 3.0%.
