Gold rises with the pressure of weak American data on the dollar

Gold rose slightly on Wednesday, supported by the dollar twice, after the weak American inflation data reinforced the expectations of reducing interest rates in September, while investors focused on US -Russian talks this week on the war in Ukraine.

The instant gold price increased by 0.2 percent to $ 3351.46 an ounce, starting at 02:39 GMT. American gold futures for December delivery increased by 0.1 percent to $ 3401.60.

“The decline in the US dollar contributed to a mild recovery of the price of gold,” said Tim Water, chief market analyst at KCM Trayd. Where the precious metal fluctuated around the level of 3350 dollars before the Trump and Putin meeting on Friday.

He added: “If the Alaska meeting does not result in a solution to the crisis and the war continues in Ukraine, gold may return to the level of 3400 dollars again.”

The White House said on Tuesday that the summit between the two presidents: American Donald Trump and Russian Vladimir Putin “is like an opportunity to listen to the president”, which reduced expectations with a rapid ceasefire agreement between Russia and Ukraine.

The data released on Tuesday showed the US consumer price index increased by 0.2 percent in July, after it increased by 0.3 percent in June. On an annual basis, the consumer price index increased by 2.7 percent.

The dollar index continued to decline, which made the assets denominated in US dollars within reach of other currencies. Markets estimate the possibility of the Federal Reserve Board of Reduce interest rates in September by approximately 90 percent, with an additional additional reduction at least by the end of the year. The indisputable gold is flourished in the low interest rate environment.

While calming commercial tensions on the market, the United States and China extended the truce of customs duties for another 90 days, which led to the avoiding the imposition of customs duties from the category of dozens on the goods of each of them.

Investors are now waiting for more US economic data to be released later this week, including the US Product Product Index, Weekly Unemployment Aid requests, and retail sales.

Elsewhere, the instant silver price increased by 0.7 percent to $ 38.14 an ounce, platinum increased by 0.4 percent to $ 1341.80, and palladium increased by 0.3 percent to $ 1132.89.