Stability of Gold Prices Amid Anticipation of the Federal Meeting

SadaNews - Gold prices continued to decline, amid indications that the tariff agenda of U.S. President Donald Trump has begun to exert inflationary pressures in the United States, which may threaten the course of interest rate cuts.

Bullion traded near $3,340 per ounce after a weekly decline of 1.8%. Data from last week showed that wholesale price inflation in the U.S. accelerated in July at the highest pace in three years, prompting traders to scale back their bets on an interest rate cut by the Federal Reserve next month. Rising borrowing costs negatively impact gold, which does not yield a return.

Raphael Bostic, the President of the Federal Reserve Bank of Atlanta, stated after a three-day tour in the southeastern United States that the pressure from tariffs is real, and that higher borrowing costs are squeezing corporate profits. Markets still expect up to two interest rate cuts this year.

Anticipation for the Outcome of the Trump-Zelensky Meeting

Traders will monitor any progress from Trump’s meeting with Ukrainian President Volodymyr Zelensky, which is dedicated to discussing potential terms for a peace agreement he discussed with Russian President Vladimir Putin during their meeting on Friday in Alaska. A permanent ceasefire or continued conflict could affect demand for gold.

Gold continues to trade close to the record level of $3,500 per ounce, which it reached in April. The metal is still up more than a quarter this year, supported by rising geopolitical tensions, concerns about the global economy, and investors' tendency to diversify away from dollar-denominated assets.

Gold fell by 0.1% to $3,340.08 per ounce by 8:35 AM Singapore time. The Bloomberg dollar index remained stable, while prices of silver and platinum saw little change, and palladium increased.