Gold gains as soft US data pressures dollar, fuels rate-cut bets

The summit between U.S. President Donald Trump and Russian President Vladimir Putin "is a listening exercise for the president," the White House said on Tuesday, tempering expectations for a quick Russia-Ukraine ceasefire deal.

Data released on Tuesday showed that the U.S. Consumer Price Index (CPI) rose 0.2% in July, following a 0.3% increase in June. On a year-over-year basis, the CPI climbed 2.7%.

The dollar index extended declines, making greenback-denominated assets more affordable to holders of other currencies.

Markets are pricing in about a 90% chance of a Federal Reserve rate cut in September, with at least one additional reduction expected by the end of the year. Non-yielding gold thrives in a low-interest-rate environment.

Easing trade tensions in the market, the United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other's goods.

Investors are now awaiting more U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.

Elsewhere, spot silver rose 0.7% to $38.14 per ounce, platinum gained 0.4% to $1,341.80 and palladium climbed 0.3% to $1,132.89.