Get 100% ad-free experienceByOctaPublished 08/13/2025, 04:47 AMGold Prices Hover Near Record Highs on Fed Rate Cut ExpectationsView all comments (0)0Gold Prices Hover As Traders Await Rate CutsOn Tuesday, Gold (XAU/USD) prices stayed around $3,350 per ounce as traders assessed the latest US CPI figures.July’s headline inflation was lower than expected, but core inflation rose above the estimate of 3.0%. This boosted expectations for a rate cut by the Federal Reserve (Fed) in September. Rate cuts tend to support gold prices, as they make gold more attractive compared to assets that pay interest.Geopolitical factors also played a role, with the US extending its tariff truce with China. Traders await potential US–Russia talks on the Ukraine conflict as they ease market tensions.Traders, watch for central bank decisions and geopolitical risks. Signs of possible Fed rate cuts or global tensions can help predict gold’s price movements, as market uncertainty often makes it more attractive as a safe investment.US Dollar Loses Strength, While Euro RisesThe EUR/USD has risen following a volatile reaction to the latest US CPI data.The euro gained, while the US dollar weakened after the mixed inflation report. Traders now expect the Federal Reserve to cut interest rates in September, which puts more pressure on the US Dollar.The drop in the US dollar is also due to reduced uncertainty around US–China trade tensions. Both sides agreed to extend their tariff truce. Upcoming talks between Trump and Putin have further eased market concerns, which benefits the euro.If you trade on EUR, keep an eye on the Federal Reserve’s decisions and any news on US–China or US–Russia relations. These can push the euro even higher.JPY Weakens: What Traders Need To KnowThe Japanese yen (USD/JPY) has weakened due to uncertainty about the Bank of Japan’s (BoJ) rate hike decisions.Investors are unsure when the BoJ will raise rates, but they still believe the central bank will stick to its policy normalisation course.Meanwhile, the US Federal Reserve is expected to cut interest rates in September, following the release of mixed inflation data. This makes the US dollar more attractive, putting pressure on the yen and reducing its safe-haven appeal.Keep an eye on upcoming US PPI data (14 August) and Japan’s Q2 GDP preview (15 August). These could create volatility in USD/JPY, so staying informed can help you make better trading decisions.Gold Prices Hover Near Record Highs on Fed Rate Cut ExpectationsView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.