Gold heads for weekly loss, spotlight on Trump-Putin talks
Gold prices inched up on Friday, but were headed for a weekly loss after hot inflation data trimmed rate-cut bets, while the market focus shifted to upcoming talks between U.S. President Donald Trump and his Russian counterpart Vladimir Putin.
Spot gold rose 0.2% to $3,343.83 per ounce by 9:01 a.m. EDT (1301 GMT), but was down 1.6% for the week.
U.S. gold futures edged up 0.2% at $3,390.80.
The U.S. dollar eased, making dollar-denominated commodities more affordable for holders of other currencies.
Data on Thursday showed that U.S. producer prices increased by the most in three years in July. Traders currently see a 92.6% chance of a 25-basis-point rate cut by the Federal Reserve in September, compared to a fully priced 25-bps cut and a 5% chance of a larger 50-bps move before the data.
Non-yielding gold prices fell following the data release, with spot gold closing 0.6% lower.
"Although gold prices stabilized on Friday, more pain could be around the corner depending on how the summit between Trump and Putin in Alaska plays out," said Lukman Otunuga, senior research analyst at FXTM.
Trump and Putin are set to meet at a Cold War-era air force base in Alaska to discuss a ceasefire deal for Ukraine.
Analysts at ANZ said macroeconomic and geopolitical risks would intensify in the second half of this year, enhancing gold's haven appeal.
"Gold's bullish outlook remains intact, supported by the prospect of rising tariffs, a slowing global economy, easing of U.S. monetary policy and persistent weakness in the U.S. dollar," ANZ said.
Meanwhile, U.S. retail sales increased solidly in July, though a softening labor market and higher goods prices could curb growth in consumer spending in the third quarter.
Spot silver fell 0.4% to $37.85 per ounce and was down more than 1% so far for the week. Platinum lost 1% to $1,344.14, and palladium fell 2.3% to $1,119.37.
Source: Reuters
