Gold prices hold steady as US inflation eases
Gold prices stayed flat at about $3,345 per ounce this week, after US inflation numbers for July came in softer than expected.
With the Consumer Price Index up just 0.2% for the month and 2.7% over the year, investors are now betting on a possible Federal Reserve rate cut in September.
Why gold is looking like a solid safety net
Lower inflation makes gold more attractive when interest rates are low—especially since gold doesn't pay interest itself.
Plus, a weaker US dollar means global buyers get more gold for their money, contributing to prices in India being pushed close to ₹100,000 per 10gm, primarily due to a global surge in gold prices.
For anyone worried about economic ups and downs, gold is looking like a solid safety net.
What could shake things up later this year
Gold's gains were held back by a 90-day extension of the US-China tariff truce, calming fears of an all-out trade war for now.
Investors are also watching upcoming US economic reports (like retail sales and producer prices) and some political moves—like President Trump's pick for the Federal Reserve board—which could shake things up later this year.