Gold prices rose in European trade on Thursday on track for the second daily profit in a row as the dollar fell against major rivals.
The development came after US inflation missed estimates in May, reducing inflationary pressures on the Fed’s policymakers and bolstering the odds of a September rate cut.
The Price
Gold prices rose 0.75% to $3377 an ounce, with a session-low at $3338.
On Wednesday, gold rose 0.95%, the second profit in three days after weak US consumer prices data.
US Dollar
The dollar index fell 0.35% on Thursday, on track for the second loss in a row, plumbing a two-month trough at 98.25 against a basket of major rivals.
A weaker dollar makes the greenback-denominated gold futures cheaper to holders of other currencies.
The US and China reached a trade framework in London after two days of intensive negotiations, with representatives waiting for the final approval of Trump and Xi Jinping to move forward.
Trump said China will supply rare-earth minerals and magnets to the US, and will get chip exports from America, with restrictions on Chinese students in US universities will be lifted as well.
US Rates
Recent data showed US inflation rose less than expected in May, with limited effects so far for Trump’s tariffs on prices.
Following the data, traders raised their estimates for a Federal Reserve rate cut in September.
Now traders await US producer prices data later today to gather even more clues.
SPDR
Gold holdings at the SPDR Gold Trust fell 1.72 tons yesterday to a total of 934.19 tons, the lowest since June 2.
