The post Gold edges higher as USD rally fades on Fed rate-cut speculation appeared on BitcoinEthereumNews.com.

Gold price edges higher as the strong US PPI-inspired USD rally lacks follow-through buying. Bets for an imminent Fed rate cut in September cap the USD and support the commodity. The upbeat market mood keeps the XAU/USD bulls on the defensive ahead of the US data. Gold (XAU/USD) adds to modest Asian session gains and recovers a part of the previous day’s losses to a two-week low, though it lacks bullish conviction. The US Dollar (USD) attracts fresh sellers and stalls Thursday’s strong Producer Price Index (PPI)-inspired gains as traders seem convinced that the US Federal Reserve (Fed) will resume its rate-cutting cycle in September. This, in turn, is seen as a key factor that helps revive demand for the non-yielding yellow metal. Meanwhile, fresh inflation jitters seem to have tempered market expectations for a more aggressive policy easing by the Fed. This, along with the prevalent risk-on environment, is holding back traders from placing aggressive bullish bets around the Gold price. Hence, it will be prudent to wait for strong follow-through buying before confirming that the XAU/USD pair has bottomed out. Traders now look to the US macroeconomic data for some impetus heading into the weekend. Daily Digest Market Movers: Gold looks to build on intraday gains amid renewed USD selling bias Traders trimmed their bets for a more aggressive policy easing by the Federal Reserve following the hotter-than-expected release of the US Producer Price Index on Thursday. The US Bureau of Labor Statistics reported that the headline PPI accelerated from the 2.4% YoY rate to 3.3% in July, surpassing expectations of a 2.5% by a wide margin. The US Dollar rebounded sharply from the vicinity of its lowest level since July 28, touched on Wednesday, and triggered an intraday turnaround of around $45 in the Gold price. The…

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Filed under: News - @ August 15, 2025 7:27 am