Gold prices rise with expectations of an interest rate cut from the Federal Reserve
Gold prices rose on Wednesday to trade near the level of 3,355 dollars per ounce, supported by US inflation data that strengthened the prospects of a rate cut by the Federal Reserve in September.
The impact of inflation data on gold prices
Consumer Price Index data for July showed that the headline inflation rate fell to 2.7%, lower than market expectations of 2.8%, while core inflation rose to 3.1% against 2.9% in the previous month.
These figures came without the concerns associated with the impact of tariffs, which prompted investors to increase their bets on a 25 basis point interest rate cut at the September meeting, which usually supports gold prices as an investment haven.
Tariffs on gold imports provoke controversy
After the ambiguity surrounding the file of tariffs on gold imports in the United States, US President Donald Trump recently confirmed that no duties will be imposed, while the Customs and Border Protection issued a decision last week to classify gold bars (weighing kilograms and 100 ounces) under a legal item subject to customs duties.
Geopolitical factors and their impact on gold
On the international front, the United States extended the tariff truce with China for 90 days, which helped calm trade concerns.
At the same time, investors are watching the ongoing talks between Washington and Moscow to end the war in Ukraine, which may be reflected on market trends.
Upcoming economic data
The markets are turning their attention to important economic data this week, including:
- Producer price index (PPI)
- Weekly unemployment benefit applications
- Retail sales
These indicators may provide additional evidence of the direction of US monetary policy and, consequently, the movement of gold prices in the coming period.
Gold from a technical point of view
Gold continued to rise from the levels indicated by us in the weekly analysis of gold, which reinforces the positive outlook for the yellow metal, especially as the pressure on the dollar continues and interest rate cut expectations increase.
Therefore, we still expect a further rise in gold prices in the coming period.
And to watch the weekly analysis of gold from here
