On Tuesday, gold prices experienced a modest rebound following a significant decline in the prior session. This movement comes as investors anticipate U.S. inflation data, which may provide additional clarity regarding the Federal Reserve’s approach to interest rate adjustments. Spot gold experienced an increase of 0.3%, reaching $3,355.59 per ounce, as of 0105 GMT. U.S. gold futures for December delivery experienced a modest increase of 0.1%, reaching a price of $3,406.80.

Gold prices experienced a decline of 1.6% on Monday, with futures falling by over 2% following U.S. President Donald Trump’s announcement that tariffs would not be imposed on imported gold bars, which alleviated market concerns. Attention is focused on the upcoming release of the U.S. consumer prices index data, scheduled for 1230 GMT. Analysts surveyed by Reuters anticipate that core CPI will increase by 0.3% in July, resulting in an annual rate of 3%, which diverges from the Federal Reserve’s target of 2%.

Market participants are currently assessing a probability of approximately 90% for a Federal Reserve rate reduction in the upcoming month. Gold typically exhibits strong performance in times of uncertainty and when interest rates are low. Trump has consistently expressed discontent with the Federal Reserve’s decision not to lower interest rates in recent meetings, while market participants are closely monitoring the potential successor to current Chair Jerome Powell, whose term concludes in May.

In a recent development, an executive order has been signed by Trump, which prolongs the suspension of significant increases in U.S. tariffs on Chinese imports for an additional 90 days, according to a White House official’s statement on Monday. On the geopolitical front, Trump will meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. Elsewhere, spot silver gained 0.6% to $37.81 per ounce, platinum rose 0.7% to $1,336.14 and palladium climbed 0.9% to $1,145.