Gold’s midweek rally has faded, with prices slipping back into their recent range during early Thursday trade.
Spot Gold (XAU/USD), which touched $3,374.66 on Wednesday, was trading at $3,345.98 by 09:15 GMT. The metal had climbed for three straight sessions after a sharp drop earlier in the week, helped by rising bets on a Federal Reserve interest rate cut next month.
Tuesday’s US consumer price data came in broadly in line with forecasts, suggesting tariff-related price pressures have yet to filter through the economy.
The steady reading bolstered expectations of a September rate cut, with markets now assigning a 95% probability.
Attention is now shifting to fresh US data, with producer prices and jobless claims due later today, followed by retail sales on Friday. The numbers could sway short-term sentiment in the bullion market.
Geopolitics is also in play. Traders are watching Friday’s meeting in Anchorage between President Donald Trump and Russian President Vladimir Putin.
Trump has warned of “severe consequences” if progress towards peace in Ukraine stalls. Any signs of tension could lift demand for gold as a safe haven, while a constructive outcome may have the opposite effect.