Gold made positive gains in late Asian trade on Tuesday, up about 0.30% as investors looked ahead to August inflation reports and the presidential debate between Donald Trump and Kamala Harris ahead of the November election.
At 9.20am, the price of gold was at $2,517.36, up a slight 0.3% since it opened in early trading on Wednesday.
The yellow metal's price position improved as the US dollar weakened its initial gains.
However, US Treasury bond yields fell before the latest Consumer Price Index (CPI) reading was announced tonight (Wednesday).
Market consensus sees inflation data going through a downward trend towards 2% to maintain the 'dovish' tone of the Federal Reserve (Fed) towards starting a rate cutting cycle amid concerns that the labor market is weakening.
Additionally, the latest US jobs report revealed a slight increase in the labor force than expected and unemployment data registered a fall. The labor figures provide relief for the Fed not to rush into the next monetary policy implementation.
Broad market expectations for a 50 basis point cut have risen to 33% and for a 25 basis point cut to 67%.
A Reuters poll revealed that 92 out of 101 economists expect the Fed to cut interest rates by 25 basis points at its September meeting.
Meanwhile, political developments began to focus on the first presidential debate between Donald Trump and Kamala Harris which took place on the morning of Wednesday, September 11, 2024.
