Gold Strengthens Ahead of US Inflation Data Release
Gold prices rose slightly on Tuesday (August 12th) after a sharp sell-off in the previous session, as investors awaited the release of US inflation data that will influence the outlook for a Federal Reserve interest rate cut. Spot gold rose 0.2% to $3,349.13 per ounce, while US gold futures were steady at $3,398.90. This movement occurred after prices plunged more than 1.6% on Monday, after US President Donald Trump decided not to impose tariffs on gold bullion imports.
US consumer inflation data, due tonight, is expected to show a 0.3% increase in core CPI in July, with the annual rate rising to 3%. If the results are lower than expected, the market will likely become more confident that the Fed will cut interest rates in September, a probability currently around 85% according to the CME FedWatch Tool. Looser monetary policy, coupled with political and economic uncertainty, generally boost gold prices.
Besides gold, prices of other precious metals also strengthened. Spot silver rose 0.6% to $37.81 per ounce, platinum rose 0.8% to $1,336.84, and palladium strengthened 1.5% to $1,152.68. Meanwhile, market attention is also focused on the future of Fed leadership, given that Chairman Jerome Powell's term ends next May, as well as developments in US-China trade relations after Trump extended the tariff truce for 90 days. (ayu)
Source: Newsmaker.id
