The yellow metal market moved lower at the end of Thursday's trading, as the US dollar rebounded after the Producer Price Index (PPI) and Weekly Jobless Claims data rose.
At 9.30am, gold was at 3,336.03, flat since it opened early Friday in Asian trading.
The US Producer Price Index (PPI) for July jumped 0.9%, well above the 0.2% forecast compared to a flat June reading, the biggest increase since June 2022. The inflation gauge rose to an annual rate of 3.3%, beating expectations of 2.5%, compared to a previous reading of 2.4%.
In addition, market sentiment remained cautious ahead of the US-Russia summit on Friday as investors weighed concerns over a possible deterioration in geopolitical relations.
President Donald Trump warned in his speech that Russia would face dire consequences if it did not agree to end the war in Ukraine.
While market players are starting to see the potential for a thaw in tensions, some are betting that it could escalate and trigger a higher gold price.
Any tensions at the summit would trigger deeper geopolitical concerns, especially if the United States intervenes in response to Russia's aggression.
