Gold rises as dollar eases; US inflation data on radar

ReutersLast Updated: Sep 08, 2026, 07:35:00 AM IST

Synopsis

Gold prices edged higher on Tuesday due to a weakening U.S. dollar, as investors gear up for crucial inflation data that could sway the Federal Reserve's policy direction. A 60% likelihood of an impending rate increase looms over the market, potentially dampening gold's attractiveness amid soaring interest rates. In parallel, other precious metals, including silver, platinum, and palladium, recorded price increases.

Gold prices nudged higher on Tuesday as the U.S. dollar slipped, with focus on upcoming inflation data that could shape expectations for the Federal Reserve's next policy move.

FUNDAMENTALS

Spot gold was up 0.3% at $4,418.79 per ounce, as of 0048 GMT. U.S. gold futures ‌for December ⁠delivery ⁠were down 0.3% at $4,464.80.

The U.S. dollar index slipped 0.3%, making greenback-priced metals more affordable for other currency holders.

The U.S. producer price index ​data is due on Thursday, and the consumer price index data is scheduled for Friday.

Gold prices fell ​on Sept. 4 after data showed ⁠U.S. job growth ‌accelerated sharply in August, while the ​unemployment rate held ​steady at 4.1%.

According to the CME ⁠FedWatch Tool, traders currently see a 60% chance ​of a rate hike at the Fed's ​policy meeting next week.

Despite being known as an inflation hedge, elevated rates tend to reduce the appeal of non-yielding gold.

Deutsche Bank now expects the European Central Bank to raise interest rates by 25 basis points ‌in December in addition to a September hike, as persistent energy risks keep pressure on the ​inflation outlook.

On the geopolitical ⁠front, Iran threatened to retaliate against any new U.S. attacks on its assets, warning that energy infrastructure across the Gulf, including ​U.S. oil and gas interests, was vulnerable.

Among other metals, spot silver gained 0.3% at $66.34 per ounce, platinum rose 0.6% at $1,836.97 and palladium climbed 0.9% to $1,401.47.

DATA/EVENTS (GMT)

N/A China Exports, Imports YY Aug

N/A China Trade Balance USD Aug

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