Gold Prices Hold Steady as Investors Await U.S. Economic Data

28 August 2025 Daily Market Update
Gold Prices Hold Steady as Investors Await U.S. Economic Data

Gold Prices Hold Steady as Investors Await U.S. Economic Data

On August 28, 2025, gold prices remained stable as market participants awaited key U.S. economic data that could influence the Federal Reserve's interest rate decisions. Spot gold was priced at $3,390.27 per ounce, while U.S. gold futures for December delivery held steady at $3,447.40. Source

Macroeconomic Drivers

Investors are closely monitoring the upcoming release of the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation measure, scheduled for Friday. Economists anticipate a 2.6% annual rise for July, consistent with the previous month. This data is crucial as it may provide insights into future interest rate decisions. The CME FedWatch Tool indicates an 88% probability of a 25-basis-point rate cut at the Fed's next policy meeting. Source

Technical Signals

Gold prices have been testing the critical $3,400 resistance level. A breakthrough above this point could signal further bullish momentum. Analysts, including Kyle Rodda of Capital.com, express optimism, stating, "We are still bullish on gold. I think all the fundamentals moving in the right direction." Source

Investor Sentiment

Market sentiment remains cautiously optimistic. The anticipation of potential rate cuts supports a favorable environment for non-yielding assets like gold. However, investors are holding back from making significant moves until the PCE data is released, which could provide clearer direction for the market.

Other Precious Metals

In the broader precious metals market:

  • Silver: Increased by 0.3% to $38.72 per ounce.
  • Platinum: Remained steady at $1,348.07 per ounce.
  • Palladium: Rose by 0.3% to $1, ... per ounce.

These movements reflect a mixed response in the precious metals market as investors await further economic indicators. Source

As the market awaits the PCE data, gold and other precious metals are likely to remain sensitive to macroeconomic developments and central bank policies.