FX.co ★ Gold Set for Weekly Loss

On Friday, gold prices remained just below $3,340 per ounce, maintaining losses from the prior session and heading for their steepest weekly decline since late June. This downturn is attributed to unexpectedly strong data from the United States, which has dampened prospects for a significant interest rate cut by the Federal Reserve. July saw US producer prices increase at their quickest rate in three years, surpassing predictions and indicating that companies are passing on the higher costs of imports due to tariffs to consumers. Currently, traders are leaning towards expecting a 25-basis-point rate cut in the upcoming month, followed by another potential cut in October. This sentiment aligns with comments from Federal Reserve's Mary Daly, who expressed opposition to a 50-basis-point reduction in September. Investor attention is now turning to Federal Reserve Chair Jerome Powell and whether he will offer new insights on monetary policy during the central bank’s upcoming annual economic symposium in Jackson Hole, Wyoming. On the geopolitical stage, there are tempered expectations that the summit between Donald Trump and Vladimir Putin on Friday will yield any substantial progress on the conflict in Ukraine.