Gold prices rose in anticipation of inflation data in the US
12 August 2025 11:59
Gold prices rose slightly on Tuesday, partially recovering from a sharp drop the day before. Market participants are awaiting US inflation data, which may provide additional information about the Federal Reserve’s plans to cut interest rates, "Komersant Ukrainian" reports citing Reuters.
As of 08:38 Kyiv time, the spot price of gold rose by 0.1% to $3,348.41 per ounce. At the same time, US gold futures for December delivery fell by 0.2% to $3,397.10.
On Monday, gold fell by 1.6% and futures fell by more than 2% after US President Donald Trump said that duties on imports of gold bullion would not be imposed. This statement calmed market nervousness.
“Market participants will now definitely focus on the upcoming Fed rate cut, which is more or less priced into September prices. If we see that the underlying CPI data comes in slightly below expectations, this could further support expectations of a rate cut,”
– explained Calvin Wong, senior market analyst at OANDA.
According to him, this could reduce the cost of holding gold, and the long-term yield on 10-year US Treasury bonds is still below key resistance levels, which could support gold prices.
Market attention is focused on the US consumer price index data to be released today. Economists polled by Reuters predict that core CPI is likely to have risen by 0.3% in July, pushing the annual rate to 3% – above the Fed’s 2% target.
According to the CME FedWatch Tool, traders estimate the probability of a Fed rate cut next month at about 85%. Gold usually does well in times of uncertainty and low interest rates.
Traders barely reacted to a statement by a White House official that Trump signed an executive order on Monday extending the pause in the sharp increase in US tariffs on Chinese imports for another 90 days.
Among other precious metals, the spot price of silver rose 0.7% to $37.89 per ounce, platinum rose 0.4% to $1,331.50, and palladium rose 0.8% to $1,145.03.
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The historical role and value of gold
Since ancient times, gold has played an exceptional role in the development of human civilization. The first evidence of its use dates back to about 4000 BC in ancient Egypt and Mesopotamia, where it was valued for its rarity, beauty and resistance to corrosion. Pharaohs and rulers demonstrated their wealth and power through gold jewelry, masks, and household items that later became priceless archaeological finds.
As trade developed, gold naturally evolved into a universal medium of exchange because it was portable, divisible, homogeneous, and had a stable intrinsic value. The first gold coins appeared around 700-600 BC in Lydia (modern Turkey), and subsequently the gold standard became the basis of the international monetary system for several centuries. Even after the abolition of the gold standard in 1971, when U.S. President Richard Nixon ended the convertibility of the dollar into gold, central banks continue to hold significant gold reserves as a strategic asset.
Since the beginning of its history, gold has symbolized not only economic wealth but also spiritual and cultural value. Many religious and cultural traditions have associated this precious metal with divine powers and eternity. Gold objects were used in rituals, temples and shrines, and in art, gold was often used to depict holiness, divine light and higher power. The cultural significance of gold is reflected in numerous myths, legends and literary works, from the legend of King Midas to the search for the golden fleece.
In today’s world, gold retains its role as a reliable store of value and a safe haven in times of economic crisis and geopolitical instability. Its value usually increases when confidence in paper currencies and financial markets falls. In addition to its investment value, gold is widely used in electronics, medical equipment, dentistry, and aerospace due to its unique physical and chemical properties – high electrical conductivity, corrosion resistance, and ductility. These features ensure that gold is in constant demand and make it not only a symbol of wealth but also a strategically important raw material for the development of high-tech industries.
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