Gold extended gains to a third straight session on Thursday, supported by rising expectations of an interest rate cut by the U.S. Federal Reserve in September following tame inflation data, which also weighed on the dollar.

Spot gold was up 0.3% at $3,356.98 per ounce by 1:15 p.m. ET, rebounding from a one-week low from the previous session. US gold futures also gained 0.3%, trading at $3,408.20 an ounce in New York.

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.