02:00 PM EDT, 08/15/2025 (MT Newswires) -- (Updates prices.)

Gold was steady midafternoon on Friday as the dollar weakened after a day-prior report showed U.S. wholesale inflation surged last month, failing to dent expectations the Federal Reserve will cut interest rates next month.

Gold for December delivery was last seen down US$0.60 to US$3,382.60 per ounce.

U.S. wholesale prices rose by 0.9% in July from June, the Bureau of Labor Statistics reported on Thursday, well ahead of the consensus estimate for a rise of 0.2% in the Producer Price Index (PPI). The higher than expected data briefly dented expectations the Federal Reserve will cut interest rates by 25 basis points at the Sept.17 end to the meeting of its policy committee but the CME FedWatch Tool is now showing a 92.8% probability for a rate cut, up from 92.1% a day earlier.

Today's summit meeting between the presidents of the United States and Russia to discuss an end to Russia's war on Ukraine is also pausing safe-haven demand for the metal, though an agreement to end hostilities is not expected.

"Gold is set for a weekly decline after a stronger than expected PPI print dented Fed rate cut expectations...Bullion remains rangebound within USD 200 as consolidation continues, with market attention now on the Trump-Putin meeting in Alaska and its potential impact on geopolitical tensions," Saxo Bank noted.

The dollar rose, with the ICE dollar index last seen down 0.38 points to 97.87. Treasury yields eased, with the U.S. two-year note up 2.4 basis points to 3.765%, with the yield on the 10-year note was paying 4.334%, up 4.4 points.