Gold prices in Asian trade on Friday inched higher, though they were set for a weekly decline, as investors weighed reduced expectations for a significant Federal Reserve rate cut against geopolitical developments, including U.S.-Russia talks scheduled later in the day.
Spot gold rose 0.3% to $3,344.88 an ounce, while December Gold Futures advanced 0.2% to $3,391.17/oz by 01:41 ET (05:41 GMT). Despite these gains, bullion was poised to lose roughly 1.5% for the week, mainly following early-week declines triggered by President Donald Trump’s announcement that gold bars would not face tariffs.
U.S. Inflation Data Cools Fed Rate Bets
Gold fell 0.6% on Thursday after July’s U.S. Producer Price Index exceeded expectations, tempering market bets for an outsized rate cut by the Fed next month. Earlier in the week, milder consumer inflation data had bolstered expectations of a September cut, but following the PPI release, the probability of a quarter-point reduction slipped from near certainty, while expectations of a half-point move also diminished.
Higher-for-longer interest rates typically weigh on bullion, as they make interest-bearing assets more attractive relative to non-yielding metals.
Geopolitical Focus: Trump-Putin Summit
Markets also monitored Friday’s summit in Anchorage, Alaska, between U.S. President Donald Trump and Russian President Vladimir Putin. Trump has warned of “severe consequences” if progress toward peace in Ukraine is blocked.
A positive outcome could curb demand for gold as a safe-haven asset, whereas failed negotiations or heightened geopolitical tensions could spur bullion buying.
Other Precious Metals
Platinum Futures edged up 0.2% to $1,367.20/oz.
Silver Futures remained largely flat at $38.073/oz.