The US dollar has weakened throughout August amid increasing market expectations for Federal Reserve interest rate cuts in September. The dollar index steadied near 97.9 as investors awaited the release of July's Personal Consumption Expenditure (PCE) inflation data, the Fed's preferred gauge of inflation. Core PCE inflation is anticipated to rise 2.9% year-over-year, marking the fastest increase in five months. Revised second-quarter GDP data showed an uptick driven by trade and investment. The dollar's decline is expected to result in a roughly 2% monthly drop for August, following its best monthly performance earlier this year. Concurrently, gold prices have risen, reaching a five-week peak near $3,400, supported by the softer dollar and optimism over potential Fed rate cuts. Market participants remain pragmatic amid concerns about the Federal Reserve's independence and the broader economic outlook.