Trump has signed an executive order extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a White House official said on Monday
Published Tue, Aug 12, 2025 · 09:46 AM
[BENGALURU] Gold prices slightly recovered on Tuesday (Aug 12), after a sharp fall in the previous session, as investors looked forward to US inflation data that could offer further insight into the US Federal Reserve’s rate-cut trajectory.
Spot gold was up 0.3 per cent at US$3,355.59 per ounce, as at 9.05 am. US gold futures for December delivery edged 0.1 per cent higher to US$3,406.80.
Gold prices slipped 1.6 per cent on Monday, while futures dropped by more than 2 per cent after US President Donald Trump said tariffs will not be placed on imported gold bars, easing jitters in the market.
All eyes are on US consumer prices index (CPI) data, which is due at 1230 GMT. Economists polled by Reuters project core CPI to have risen 0.3 per cent in July, pushing the annual rate higher to 3 per cent, away from the US Fed target of 2 per cent.
Traders are pricing in around a 90 per cent chance of a Fed rate cut next month. Gold tends to perform well during periods of uncertainty and in a low-interest-rate environment.
Trump has repeatedly criticised the Fed for not cutting rates at recent meetings, and markets are eyeing who will succeed current Chair Jerome Powell, whose term ends in May.
Meanwhile, Trump has signed an executive order extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a White House official said on Monday.
On the geopolitical front, Trump will meet Russian President Vladimir Putin on Aug 15 in Alaska to negotiate an end to the war in Ukraine.
Elsewhere, spot silver gained 0.6 per cent to US$37.81 per ounce, platinum rose 0.7 per cent to US$1,336.14 and palladium climbed 0.9 per cent to US$1,145.32. REUTERS
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