Gold Prices Decline Amid Easing Geopolitical Tensions and Anticipation of U.S. Inflation Data

11 August 2025 Daily Market Update
Gold Prices Decline Amid Easing Geopolitical Tensions and Anticipation of U.S. Inflation Data

On August 11, 2025, gold prices experienced a decline as investors responded to easing geopolitical tensions and awaited the release of U.S. inflation data. Spot gold fell by 0.7% to $3,376.67 per ounce, while U.S. gold futures for December delivery decreased by 1.5% to $3,439.70. This downward movement was influenced by the announcement of an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin, aimed at negotiating an end to the Ukraine conflict. The meeting is scheduled to take place in Alaska on August 15. Source

Macroeconomic Drivers

Investors are closely monitoring the U.S. consumer price data set to be released on August 12. Analysts anticipate that tariffs may have pushed core inflation to 3.0%, surpassing the Federal Reserve's 2% target. This data could significantly influence the Fed's future interest rate decisions. Recent weaker-than-expected U.S. job data has already heightened speculation of a potential rate cut in September, with markets pricing in a 90% chance. Lower interest rates typically benefit non-yielding assets like gold. Source

Technical Signals

Despite the recent decline, gold remains supported as investors might seek to buy at lower prices. COMEX gold speculators have significantly increased their net long positions, indicating a bullish sentiment in the market. Source

Investor Sentiment

The easing of geopolitical tensions, particularly the planned U.S.-Russia talks, has reduced the safe-haven demand for gold. However, the anticipation of U.S. inflation data and potential Federal Reserve actions continue to keep investors engaged in the precious metals market. Source

Other Precious Metals

In the broader precious metals market:

  • Silver fell 0.5% to $38.13 per ounce.
  • Platinum dropped 1.1% to $1,317.90 per ounce.
  • Palladium edged up 0.1% to $1,127.37 per ounce.

These movements reflect the complex interplay of market factors influencing precious metals. Source

As the market awaits further economic data and geopolitical developments, investors are advised to stay informed and consider multiple factors when making investment decisions in the precious metals sector.