Gold prices remained near their peak and could benefit from a weaker dollar and sliding treasury yields.
The softer-than-expected US Producer Price Index (PPI) data for July contributed to the positive conditions for gold and supported the speculations about a potential 50 basis point interest rate cut in September.
Investors’ attention is now focused on the upcoming US Consumer Price Index (CPI) and retail sales data, which could offer more clues about Federal Reserve monetary policy direction. If the CPI data comes in lower than expected, gold might see more gains.
At the same time, geopolitical risks in the Middle East and Eastern Europe could continue to support demand for the precious metal. Increased uncertainty might drive demand for gold as a safe-haven asset if tensions escalate into broader conflicts.
