WASHINGTON (dpa-AFX) - Gold ticked lower on Thursday but held above the $3,600 mark amid geopolitical tensions and expectations of Federal Reserve interest-rate cuts.
Spot gold dipped 0.6 percent to $3,618.29 per ounce in European trade, while U.S. gold futures were down 0.7 percent at $3,655.70.
Profit-taking pressured bullion after Thursday's data showed U.S. producer prices unexpectedly fell in August due to lower trade services margins and modest increases in goods costs.
The dollar was up modestly against a basket of currencies as investors await high-stakes U.S. consumer price inflation data later in the day for additional clues on the outlook for interest rates.
Consensus estimate show that the headline CPI likely rose 2.9 percent from a year earlier in August, the fastest pace since January, while the core measure likely held at 3.1 percent.
A tame report could fuel bets of 50 bps rate cut from the Federal Reserve when it meets next week.
With job growth getting stalled due to trade policy uncertainty, markets are also pricing in three additional 25 bps consecutive cuts from the U.S. central bank by January 2026.
Meanwhile, the European Central Bank announces its interest-rate decision later today, followed later by a press conference with President Christine Lagarde.
With inflation under control and U.S. tariff tensions easing, the likelihood of further rate cuts appears low.
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