Gold futures posted modest gains Wednesday on heightened expectations of a Federal Reserve interest rate cut after mild July inflation data signaled limited pass-through from President Trump's tariffs.

Bessent made his most explicit call yet for the Fed to execute a cycle of interest-rate cuts, suggesting the central bank’s benchmark ought to be at least 1.5 percentage points lower than it is now. Bullion typically benefits in a lower-rate environment as it pays no interest.

Gold rose on Wednesday, lifted by a weaker dollar and falling Treasury yields, as mild U.S. inflation data cemented expectations for a Federal Reserve rate cut in September and nudged up bets on additional easing later this year.