PRECIOUS-Gold extends rise on Fed rate-cut hopes, softer dollar
By Brijesh Patel
Aug 14 (Reuters) - Gold extended gains to a third session on Thursday, supported by rising expectations of an interest rate cut by the U.S. Federal Reserve in September following tame inflation data, which also weighed on the dollar.
Spot gold XAU= rose 0.1% to $3,357.65 per ounce by 0410 GMT. U.S. gold futures GCcv1 for December delivery lost 0.1% to $3,406.80.
"Markets are pricing in the chance that the Fed cuts 50 basis points in September. So, the dollar is weakening, gold is going up as a result, yields are also down," said Kyle Rodda, Capital.com's financial market analyst.
"The technical setup of gold looks really constructive. The trend still looks higher. We just basically need to see the market break through $3,400 level on a sustained basis."
The dollar .DXY languished near multi-week lows against its rivals, making gold less expensive for holders of other currencies. Benchmark U.S. 10-year Treasury yields US10YT=RR held near a one-week low. USD/ US/
U.S. consumer prices rose only marginally in July, strengthening expectations of a Fed rate cut next month, with Treasury Secretary Scott Bessent noting there is a good chance the central bank will opt for a 50-bp reduction.
Traders now see a cut on September 17 as a near certainty, according to data compiled by LSEG, and even lay around 6% odds of a super-sized half-point trim. USDIRPR
Non-yielding gold thrives in a low interest-rate environment.
Investors are awaiting more U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims and retail sales data, for clues into the Fed's rate path.
On the geopolitical front, Ukrainian President Volodymyr Zelenskiy said he warned U.S. President Donald Trump ahead of his talks with Vladimir Putin that the Russian leader was "bluffing" about his desire to end the war.
Elsewhere, spot silver XAG= was steady at $38.49 per ounce, platinum XPT= eased 0.3% to $1,336.0 and palladium XPD= rose 1.2% to $1,135.93.
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%.
