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According to Reuters, spot gold gained 0.3 percent to 3,355.58 dollars per ounce by late afternoon trading in New York. U.S. gold futures for December delivery settled 0.3 percent higher at 3,408.3 dollars. The dollar index fell to a more than two-week low, making bullion less expensive for buyers using other currencies, while the benchmark 10-year Treasury note yield edged lower.
Markets priced in a 97 percent chance of a September rate cut following the benign July consumer price index reading that signaled limited pass-through from import tariffs, Reuters reported. The inflation figures followed weak non-farm payrolls data earlier that month, reinforcing bets on at least one additional easing move before year-end. Traders awaited further U.S. economic releases including the producer price index, weekly jobless claims and retail sales.
Nikos Tzabouras, senior market analyst at Tradu.com, said, “Gold is buoyant on heightened expectations of a September Fed rate cut, following benign CPI data and July’s weak non-farm payrolls.” Fawad Razaqzada, market analyst at City Index and FOREX.com, said, “If gold were to take out recent resistance around 3,400, it would likely be driven more by geopolitical developments than by economic data.” Razaqzada added, “While I maintain a bullish long-term outlook on gold, my view for the rest of this year is more cautious. Prices may continue to consolidate or see a mini correction in the coming months as equity markets rally aggressively.”
European and Ukrainian leaders were scheduled to speak with then-President Trump ahead of his meeting with Russian President Vladimir Putin to discuss the war in Ukraine, Reuters reported. Washington and Beijing extended their tariff truce by 90 days. Gold tends to benefit from low interest rates as a traditional refuge in times of economic or geopolitical strain, the agency noted.
J.P. Morgan Global Research analysts projected gold to average 6,000 dollars per ounce by the final quarter of 2026 with the possibility of reaching 6,300 dollars in 2027. The World Gold Council outlook for 2026 indicated that a weaker dollar and lower rates could contribute around 10 percentage points to gains through reduced opportunity costs. Central bank buying remained a key support for the metal amid potential economic slowdowns, according to the council’s assessment.
Spot silver rose 1.6 percent to 38.50 dollars per ounce during the session. Platinum gained 0.3 percent to 1,339.75 dollars while palladium added 0.5 percent to 1,135.23 dollars, Reuters figures show. The moves across precious metals reflected broader market positioning in response to anticipated lower borrowing costs.
Investopedia has detailed how a weaker U.S. dollar typically supports gold prices since the metal is denominated in the American currency. Buyers using other currencies can acquire more gold when the dollar declines, increasing overall demand. This relationship, combined with monetary policy shifts, shaped trading patterns through the period.
