Gold Prices Extend Gains Amid Fed Rate Cut Expectations and Weaker Dollar

14 August 2025 Daily Market Update
Gold Prices Extend Gains Amid Fed Rate Cut Expectations and Weaker Dollar

Gold Prices Extend Gains Amid Fed Rate Cut Expectations and Weaker Dollar

On August 14, 2025, gold prices continued their upward trajectory for the third consecutive session, driven by increasing expectations of a U.S. Federal Reserve interest rate cut in September and a weakening U.S. dollar. Spot gold edged up by 0.1% to $3,357.65 per ounce, while U.S. gold futures for December delivery slipped slightly by 0.1% to $3,406.80. Source

Macroeconomic Drivers

A subdued U.S. inflation report has heightened market expectations for a Federal Reserve rate cut, with a 50 basis point reduction in September now considered likely. Treasury Secretary Scott Bessent's comments have further supported this outlook. Concurrently, the U.S. dollar remains near multi-week lows, enhancing gold's appeal as an alternative investment. Source

Technical Analysis

Financial analyst Kyle Rodda noted that favorable technical conditions suggest a sustained break above $3,400 could signal further gains for gold. Investors are closely monitoring upcoming U.S. economic data for additional insights into monetary policy direction. Source

Investor Sentiment

Investor sentiment remains cautiously optimistic, with the market pricing in one to two rate cuts by year-end, the first expected at either the September or October meeting. This outlook aligns with the forward curve and analyst forecasts, which anticipate gold prices to end the year between $3,300 to $3,400 per ounce. Source

Other Precious Metals

In the broader precious metals market:

  • Silver held steady at $38.49 per ounce.
  • Platinum slipped 0.3% to $1,336.00 per ounce.
  • Palladium rose 1.2% to $1,135.93 per ounce.

These movements reflect a complex interplay of supply concerns and industrial demand across the precious metals spectrum. Source

As the market anticipates further economic indicators and potential policy shifts, gold's performance continues to be a focal point for investors seeking stability amid evolving financial landscapes.