Gold rises as markets weigh Trump’s rate-cut push

Gold bars

Gold prices rose on Wednesday as markets assessed US President Donald Trump's call for an immediate interest rate cut, despite data indicating a rise in inflation during June.

Gold futures for August delivery increased by 0.2%, or $6.20, to $3,342.90 per ounce.

Spot gold prices also rose 0.4%, or $12.57, to $3,337.12 per ounce as of 8:51 am Makkah time.

Meanwhile, the US dollar index — which measures the greenback’s performance against a basket of six major currencies — dipped slightly by around 0.1% to 98.00 points.

September silver futures edged up 0.1% to $38.14 per ounce, while spot platinum prices rose 0.95% to $1,381.20, and spot palladium gained 1.25% to $1,209.56.

"Consumer prices low," Trump posted on Truth Social, his social media platform. He also called on the Fed to cut interest rates by 3 percentage points, saying such a move would save "One trillion dollars a year."

The Bureau of Labor Statistics reported on Tuesday that the Consumer Price Index (CPI) rose 0.3% in June compared to the previous month, and 2.7% year-on-year — a notable acceleration from May’s 0.1% monthly and 2.4% annual increases.