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Gold prices nudged higher in Asian trading on Thursday, getting a lift from expectations that the U.S. Federal Reserve will lower interest rates next month. Spot gold rose 0.2% to $3,361.87 an ounce, while December gold futures held steady at $3,409.65.
It was the third straight day of gains for gold after a rocky start to the week, when prices fell sharply following President Donald Trump’s comments that gold bars would not be subject to tariffs.
The latest rise is being fueled by fresh bets on a September Fed rate cut. U.S. inflation data earlier this week showed the consumer price index rising in line with expectations. Economists say the full effects of tariff-driven price increases have not yet appeared in the numbers. This mild reading strengthened the case for the Fed to ease monetary policy, with markets now pricing in a 95% chance of a 25-basis-point cut next month.
Lower interest rates tend to make gold more appealing because it doesn’t offer interest or dividends, so the “cost” of holding it falls when rates drop.
Traders are also watching political developments closely. Attention is turning to Friday’s planned meeting between President Trump and Russian President Vladimir Putin in Anchorage. The two are set to discuss the war in Ukraine and other issues. On Wednesday, Trump warned there would be “severe consequences” for Russia if progress toward peace was blocked. A constructive outcome could lessen gold’s appeal as a safe haven, but if talks break down or tensions rise, bullion prices could spike.
In other metals, trading was quiet. Platinum futures slipped 0.2% to $1,346.65, silver inched 0.1% higher to $38.645, and copper prices were mostly flat in both London and U.S. markets.
The combination of interest rate speculation and geopolitical uncertainty is keeping gold in focus, with investors ready to react to both economic data and political headlines in the days ahead.