Gold prices jumped more than 1.0 per cent on Thursday to break above the $2,400 per ounce level after data showed US consumer prices unexpectedly slipped last month, boosting bets for interest rate cuts by the Federal Reserve, reports Reuters.
Spot gold was up 1.5 per cent at $2,406.99 per ounce by 05:56 a.m. ET (1256 GMT), its highest since May 22. US gold futures rose 1.4 per centto $2,412.60. "Gold surges above $2,400 as the friendly CPI number nearly cements a September rate cut. Gold bulls are likely to push for a new all-time high perhaps as soon as next week," said Tai Wong, a New York-based independent metals trader.
U.S. consumer prices unexpectedly fell and the annual increase was the smallest in a year, reinforcing views that the disinflation trend was back on track and drawing the Fed another step closer to cutting interest rates.
Interest-rate futures prices reflected about an 85 per cent chance of a rate cut at the Fed's September meeting, compared with about a 70 per cent chance seen before the data.
Spot silver climbed 2.7% to $31.63 per ounce, its highest since May 31. Platinum rose 1.9% to $1,008.35 and palladium gained 1.6% at $1,002.54
Gold reclaims $2,400 mark after US inflation data lifts rate-cut bets
FE Team | Published: July 11, 2024 22:53:31
Gold reclaims $2,400 mark after US inflation data lifts rate-cut bets
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