Gold eased slightly to around $3,375 per ounce on Wednesday but remained near a two-week high, supported by growing expectations of a more dovish U.S. monetary policy.

The metal’s appeal was underpinned by weak U.S. economic data, with the ISM services index falling short of expectations in July, pointing to sluggish growth, declining employment, and rising price pressures. Additional data last week also signaled softness in the labor market and consumer spending.

These signs of economic strain have bolstered expectations that the Federal Reserve will cut rates at its September meeting, with markets now pricing in a 90% chance of an easing move.

Gold also drew support from renewed geopolitical and policy uncertainty, including President Trump’s latest round of tariffs and concerns over the Fed’s independence following the resignation of Governor Kugler — a move that could allow Trump to appoint a more dovish replacement.