Gold Prices Rise Amid Soft U.S. Inflation Data and Weaker Dollar
Gold Prices Rise Amid Soft U.S. Inflation Data and Weaker Dollar
On August 13, 2025, gold prices experienced a modest increase, driven by softer-than-expected U.S. inflation data and a subsequent weakening of the U.S. dollar. Spot gold rose by 0.2% to $3,351.46 per ounce, while U.S. gold futures for December delivery remained steady at $3,399.60. This uptick reflects growing investor anticipation of a potential Federal Reserve interest rate cut in September. Source
Macroeconomic Drivers
The U.S. Consumer Price Index (CPI) for July increased by 0.2%, a slight decrease from June's 0.3% rise, bringing the annual rate to 2.7%. This deceleration in inflation has led to a decline in the dollar index, making gold more attractive to investors seeking a hedge against currency depreciation. Additionally, the upcoming U.S.-Russia summit concerning the Ukraine conflict has introduced a layer of geopolitical uncertainty, further bolstering gold's appeal as a safe-haven asset. Source
Technical Analysis
From a technical perspective, gold is approaching key resistance levels. Analysts suggest that a sustained break above $3,400 per ounce could signal further bullish momentum. Conversely, support is observed around the $3,300 mark, with a breach below potentially indicating a short-term bearish trend.
Investor Sentiment
Investor sentiment remains cautiously optimistic. The SPDR Gold Shares ETF (GLD) is currently trading at $309.21, reflecting a slight increase of 0.31% from the previous close. This movement indicates sustained interest in gold-backed assets amid prevailing economic uncertainties.
Other Precious Metals
Silver prices also saw an uptick, rising 0.8% to $38.17 per ounce. Platinum experienced a minor decline of 0.1%, settling at $1,335.82, while palladium remained unchanged at $1,129.37. These movements suggest a mixed response in the precious metals market, influenced by varying industrial demands and economic indicators. Source
In summary, gold's recent price increase is primarily attributed to softer U.S. inflation data and a weaker dollar, with potential Federal Reserve policy adjustments on the horizon. Investors are advised to monitor upcoming economic data releases and geopolitical developments to inform their investment strategies.
