Gold steady before Fed data; oil dips amid US-India trade tensions
3 Min Read
As gold prices remain steady with markets awaiting US data and the Fed decision, oil prices dip on soft demand and US-India tensions over Russian crude imports.
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A jewelry shop owner shows a gold nugget at his store in Lucknow, India, Thursday, Aug. 7, 2025 (AP)
Gold prices held steady on Thursday as markets awaited key US economic data for clues on the Fed's rate path, while oil prices edged lower on the approaching end of the US driving season and US-India trade tensions.
Spot gold was steady at $3,390.27 per ounce after reaching a multi-week high earlier in the session, while US gold futures for December delivery also held flat at $3,447.40.
Analyst Kyle Rodda noted that institutional trust issues and concerns over the Federal Reserve's independence are generating positive interest for gold, with all eyes on the upcoming US Personal Consumption Expenditures data for Friday, which is seen as critical for pushing the price above the key $3,400 level.
Markets are anticipating an over 88% chance of a 25-basis-point rate cut at the Federal Reserve's policy meeting next month, which is particularly favorable for non-yielding gold that typically performs well in a low-interest-rate environment.
Oil falls amid US-India tariff standoff
When it comes to oil, West Texas Intermediate declined by 39 cents to $63.76 a barrel and Brent crude eased by 41 cents to $67.64, following a more than 1% rise in the previous session and putting both benchmarks on course for their largest monthly decline since April.
The latest EIA data presented a mixed picture for the US oil market as nationwide crude inventories fell by 2.4 million barrels, exceeding the expected draw and led by a rare decline in stockpiles at the Cushing, Oklahoma delivery hub for the first time in eight weeks.
Refinery runs were reported lower across all US regions, pulling nationwide throughput to its lowest level since early July and raising questions about whether refiners will sustain current crude drawdowns in the coming weeks.
Alongside demand signals, traders are closely tracking Washington’s escalating pressure on India to halt imports of Russian crude as the White House this week doubled tariffs on Indian goods to 50% in a broader effort to dissuade New Delhi from continuing its energy trade with Moscow.
Despite the sharp language and fresh tariffs, market watchers expect India to maintain its Russian crude purchases for now, with IG market analyst Tony Sycamore noting that this continuation should limit the immediate impact of the tariffs on global supply.
