WASHINGTON (dpa-AFX) - Gold prices inched higher on Wednesday while the dollar weakened on rate cut expectations.
Spot gold edged up by 0.3 percent to $3,359.58 per ounce in European trade, while U.S. gold futures were up 0.3 percent at $3,410.12.
The dollar index dipped as in-line U.S. inflation reading bolstered speculation the Federal Reserve will cut interest rates by 25 basis points in September, bringing forward its easing forecast amid fears of a weakening labour market.
U.S. Treasury Secretary Scott Bessent wants the Fed to keep the door open to a larger, 50 basis-point rate cut next month following recent weak job growth revisions.
Annual consumer price inflation held steady from the previous month at 2.7 percent in July, while economists had expected the pace of growth to tick up to 2.8 percent, data showed on Tuesday.
Core inflation, which excludes volatile food and energy prices, came in a tad higher than anticipated at 3.1 percent.
Fed Bank of Richmond President Tom Barkin said on Tuesday that uncertainty over the direction of the economy is decreasing, but employment could take a hit if consumers pull back more significantly.
Meanwhile, in a social media post, President Donald Trump resumed his criticism of Jerome Powell over the central bank's decision to hold interest rates.
Trump threatened a major lawsuit against Powell over the renovation of the central bank's headquarters - a project whose cost overruns have drawn scrutiny.
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