Gold prices held steady on Friday, August 15, but still posted a weekly decline as hotter U.S. inflation data dampened expectations for interest rate cuts. Investors are now shifting their focus to the high-stakes summit between U.S. President Donald Trump and Russian President Vladimir Putin.
Spot gold closed the session nearly unchanged at $3,336.66/oz, though it slipped 1.8% for the week. U.S. gold futures also hovered around $3,382.6/oz.
A weaker U.S. dollar provided some support, making gold—priced in dollars—more attractive to holders of other currencies.
Data released on August 14 showed U.S. producer prices (PPI) rising at the fastest pace in three years, intensifying inflation concerns. Futures markets now assign a 92.6% probability that the Federal Reserve will cut rates by 25 basis points at its September 2025 meeting.
Following the PPI release, spot gold briefly fell 0.6%, reflecting investor caution over the Fed’s next policy move.
“Although gold held firm on Friday, the outlook could hinge on the outcome of the Trump-Putin summit in Alaska,” said Lukman Otunuga, Senior Research Analyst at FXTM.
President Trump arrived in Alaska for what he described as a “high-risk” meeting with Putin to discuss a possible ceasefire deal in Ukraine. Analysts note that geopolitical uncertainty, combined with lower interest rates, typically boosts demand for gold as a safe-haven asset.
Economists at ANZ added that both macroeconomic and geopolitical risks are likely to rise in the second half of 2025, further enhancing gold’s appeal.
Meanwhile, U.S. retail sales in July 2025 recorded strong growth, highlighting resilient consumer spending. Still, a weakening labor market and elevated commodity prices could weigh on household expenditures in the third quarter, posing challenges for broader economic momentum.
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