Gold trades cautiously ahead of US inflation and GDP data – London Business News | Londonlovesbusiness.com

Gold futures started higher on Wednesday, but investors could remain cautious ahead of important US economic and inflation reports due later this week.

These reports are expected to impact the Federal Reserve’s policy decisions. Key data to watch include the second-quarter GDP report on Thursday and the June PCE price index on Friday.

These figures could provide clues about the Fed’s future actions, with the market currently expecting rate cuts to start in September, which could support higher gold prices.

This trend is likely to persist, particularly as the US Dollar’s slight retreat from its peak reinforces the appreciation in gold prices. Gold prices may also benefit from improved sentiment due to stronger anticipated demand in India. Central bank demand as well as geopolitical tensions could also remain strong drivers for gold prices.