Gold prices remained stable around $3,350 per ounce on Wednesday as investors assessed the implications of recent inflation data and ongoing uncertainty regarding potential tariffs on gold imports. The slightly lower-than-expected inflation figures supported expectations of a Federal Reserve rate cut, bolstering the appeal of gold.
- Gold prices hovered around $3,350 per ounce.
- July’s headline inflation came in at 2.7%, below the 2.8% forecast.
- Core inflation rose to 3.1% from 2.9%.
- The data reinforced expectations for a 25 bps Fed rate cut in September.
- Conflicting signals exist on the tariff status of gold imports.
- President Trump initially said there would be no levy.
- Customs and Border Protection classified certain gold bars under a tariff-subject customs code.
- The US extended its China tariff truce by 90 days.
- Investors are anticipating US–Russia talks concerning the Ukraine war.
The current environment presents a mixed outlook for gold. Weaker inflation figures and the likelihood of a future interest rate cut typically favor gold as an investment. However, the unresolved issue of import tariffs creates uncertainty. Geopolitical factors, such as the extended tariff truce with China and upcoming US-Russia talks, are providing additional considerations, leading to a period of watchful observation in the gold market.