On the morning of August 29 ( GMT), spot gold prices fell 0.2%, down to $3,411.29/ounce due to profit-taking activities. The price of US gold futures for December delivery also decreased slightly by 0.1%, down to 3,470.80 USD/ounce.
However, since the beginning of the month, gold prices have increased by 3.7%. The precious metal hit $3,423.16 an ounce - its highest level since July 23 on Thursday.
USD Index The USD Index is on a monthly decline, making gold cheaper for investors holding other currencies. Gold is still a favorite choice for investors as the US is expected to enter a period of loose monetary policy from next month Tim Waterer - market analyst at KCM Trade commented.
US Federal Reserve Governor Christopher Waller emphasized on August 28 that he would support a short-term interest rate cut next month, and said that it could continue to cut in the next 3-6 months.
According to the CME FedWatch tool, traders are now betting on an 86% chance that the Fed will cut 25 basis points at its September meeting.
In a low interest rate environment, gold, which does not yield, often benefits. Investors are waiting for the report on the personal consumption expenditure (PCE) price index, the Fed's preferred inflation measure, to be released on the day.
If the core PCE remains stable at 0.3% for the month, it will further strengthen expectations of a Fed rate cut, Waterer said.
In another development, Fed Governor Lisa Cook filed a lawsuit on August 28, arguing that US President Donald Trump has no right to remove her from office.
In other precious metals, spot silver fell 0.6% to $28.82/ounce, platinum fell 1.2% to $1,343.8/ounce and gold lost 0.4% to $1,097.73/ounce.
See more news related to gold prices HERE...
