Spot Gold gained on Wednesday on the back of a softer US Dollar, as the latest US CPI inflation data added to expectations of an interest rate cut by the Federal Reserve in September.
Annual headline consumer inflation in the US remained stable at 2.7% in July, against expectations of an acceleration to 2.8%.
But, annual core CPI inflation picked up to 3.1% in July from 2.9% in June, exceeding market consensus.
Markets are now pricing in a 90% chance of a 25 basis point rate cut in September, with one more cut expected by year-end.
The US Dollar Index was last down 0.12% to 97.933.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Meanwhile, market players awaited the summit between US President Donald Trump and Russia’s President Vladimir Putin on August 15th.
“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,” Tim Waterer, chief market analyst at KCM Trade, was quoted as saying by Reuters.
“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.”
Spot Gold was last up 0.19% on the day to trade at $3,354.83 per troy ounce.
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