Gold gains on softer dollar ----

FE Team | Published: July 16, 2025 22:19:01

Gold gained on Wednesday on a softer dollar, while investors awaited more clarity on trade talks between the US and its trading partners, with another inflation print due that could give further guidance on the US Federal Reserve's policy outlook, reports Reuters.
Spot gold was up 0.4 per cent at $3,335.0 per ounce, as of 1100 GMT. US gold futures edged 0.2 per cent higher to $3,342.20.
The US dollar was down 0.1 per cent, making gold cheaper for buyers holding other currencies.
"Currently the dollar is easing ahead of the US PPI data as traders take a cautious position after the recent gains, which has given gold a gentle uplift," Ross Norman, an independent analyst, said.
On the data front, US consumer prices increased by the most in five months in June amid higher costs for some goods, signalling rising inflation and possibly keeping the Fed's rate-cut plans on hold until September.
The spotlight is now on the US producer price index (PPI) data, due at 1230 GMT.
On the trade front, President Donald Trump on Tuesday said the US would impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country and that more deals were coming, while offering fresh details on planned duties on pharmaceuticals.
The deal with Indonesia is among the handful struck so far by the Trump administration ahead of an August 1 deadline when duties on most US imports are due to rise again.
The gold market has rejected the $3,400 level mark multiple times despite Trump's new tariff updates, said Ajay Kedia, director at Mumbai-based Kedia Commodities.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-rate environment.
"In the short term, the gold price is likely to consolidate before staging another rally toward $3,600/oz by year end," ANZ said in a note.
Elsewhere, spot silver gained 0.6 per cent to $37.93 per ounce. Platinum rose 0.6 per cent to $1,380.25, while palladium fell 0.8 per cent to $1,196.82.