During the U.S. trading session on Wednesday (August 13), influenced by the mild inflation data in the United States, the market's expectations for the Federal Reserve to cut interest rates next month increased, and the possibility of further loose monetary policy later this year also increased, and gold prices rose slightly.



Spot gold rose 0.3% to $3,356.98 an ounce as of 1:15 p.m. ET, rebounding from a one-week low hit in the previous session. U.S. gold futures on the New York Mercantile Exchange also rose 0.3% to $3,408.20 an ounce.

Meanwhile, the U.S. dollar index hit a two-week low, making gold cheaper for overseas buyers. Also supporting gold was a slight decline in the benchmark 10-year U.S. Treasury yield.

"Gold prices are rising on rising expectations of a September rate cut by the Federal Reserve following the release of benign CPI data and weak non-farm payrolls data for July," said Nikos Zabras, senior market analyst at Tradu.

Markets are pricing in a 97% probability of a September rate cut from the Federal Reserve, as tame inflation data for July, following weak jobs data earlier this month, suggested the impact of President Trump's massive import tariffs was limited.

Investors are now awaiting more indicators due this week, including the producer price index, weekly initial jobless claims and retail sales data.

Fawad Razakzada, market analyst at City Index, added: "If gold were to break through recent resistance around $3,400, it would be more likely to be driven by geopolitical developments rather than economic data. While I maintain my long-term bullish view on gold, I am more cautious about the remainder of the year. With the sharp rise in equities, gold prices are likely to continue to consolidate or experience a minor correction in the coming months."

Gold, a traditional safe-haven asset, has risen nearly 30% this year, thanks to rising geopolitical risks and increased demand from central banks.


(Source of spot gold daily chart: Yihuitong)

From a technical perspective, Fxempire analyst Vladimir Zernov believes that gold prices have risen as traders focus on the continued pullback in the US dollar, driven by bets on a dovish Fed. Gold needs to hold above the $3,350-3,360 support level to gain any sustained upward momentum.

At 02:01 Beijing time, spot gold was quoted at US$3,352.25 per ounce, up 0.13%.