WASHINGTON (dpa-AFX) - Gold ticked higher on Friday as the dollar failed to sustain its recovery from the previous session.
Spot gold edged up by 0.3 percent to $3,3343.88 per ounce in European trade, but was poised for a weekly decline as hotter-than-expected producer price inflation data prompted traders to dial back expectations for a Federal Reserve rate cut next month. U.S. gold futures were up 0.2 percent at $3,390.40.
The dollar index was a tad softer as disappointing U.S. and Chinese economic data raised worries about the global economic outlook.
Producer price inflation data released overnight partly offset optimism about a September interest rate cut generated by the consumer price inflation data released earlier this week.
While bets on a 'jumbo' 50-basis-point cut evaporated, CME Group's FedWatch Tool still indicates a 92.6 percent chance the Federal Reserve will lower rates by a quarter point next month.
U.S. reports on import prices, retail sales, industrial production and consumer sentiment due later in the day may provide further clues about the direction of the world's largest economy.
Elsewhere, China reported underwhelming economic data today. China's factory output growth slumped to an eight-month low in July and retail sales growth slowed sharply, highlighting demand woes at home.
Fixed asset investment grew just 1.6 percent in the first seven months of the year from the same period last year and new-home prices fell at a faster pace in July, raising worries of a deepening downturn.
Investors also eye the summit between the U.S. and Russian presidents in Alaska, with U.S. President Donald Trump saying he believes his Russian counterpart is ready to make a deal to end the war in Ukraine.
in an interview with Fox News Radio on Thursday, Trump said that today's meeting in Alaska could pave way for a second meeting with Ukraine President Volodymyr Zelenskiy.
He also estimated that there was a 25 percent chance that the meeting with Putin would not be successful.
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