Gold Prices Edge Higher Amid Anticipation of U.S. Inflation Data

12 August 2025 Daily Market Update
Gold Prices Edge Higher Amid Anticipation of U.S. Inflation Data

Gold Prices Edge Higher Amid Anticipation of U.S. Inflation Data

On August 12, 2025, gold prices experienced a modest uptick as investors turned their attention to the forthcoming U.S. inflation data, which could influence the Federal Reserve's interest rate decisions. Spot gold rose by 0.2% to $3,350.03 per ounce, recovering from a significant decline the previous day. U.S. gold futures for December delivery remained steady at $3,402.80. reuters.com

Market Drivers

The recent volatility in gold prices can be attributed to several key factors:

  • U.S. Inflation Data: Investors are eagerly awaiting the release of the U.S. Consumer Price Index (CPI) data. A lower-than-expected core CPI could bolster expectations for a Federal Reserve rate cut in September, potentially enhancing gold's appeal as a non-yielding asset. reuters.com
  • Tariff Relief: President Donald Trump's announcement that imported gold bars will not face tariffs alleviated market concerns, contributing to the stabilization of gold prices. reuters.com
  • Federal Reserve Policy: The market has priced in an 85% chance of a rate cut, according to CME FedWatch data. Lower interest rates reduce the opportunity cost of holding gold, making it more attractive to investors. reuters.com

Technical Analysis

From a technical perspective, gold is trading near its recent highs, with support levels around $3,300 and resistance near $3,400. The Relative Strength Index (RSI) indicates that gold is approaching overbought territory, suggesting potential consolidation in the near term.

Investor Sentiment

Investor sentiment remains cautiously optimistic. The SPDR Gold Shares ETF (GLD) is currently trading at $308.27, reflecting a slight decrease of 0.00104% from the previous close.

Other Precious Metals

In the broader precious metals market:

  • Silver: Increased by 0.6% to $37.81 per ounce. reuters.com
  • Platinum: Rose to $1,334.24 per ounce. reuters.com
  • Palladium: Climbed to $1,143.93 per ounce. reuters.com

These movements indicate a positive trend across the precious metals sector, influenced by similar macroeconomic factors affecting gold.

Conclusion

As the market awaits the U.S. inflation data, gold prices are likely to remain sensitive to economic indicators and Federal Reserve policy decisions. Investors should monitor these developments closely, as they will play a crucial role in shaping the short-term trajectory of gold and other precious metals.