Fed Split Sends Gold Prices Soaring to Ten-Week Peak

The price of gold has surged to its highest level in ten weeks, reaching $4,478.80 per troy ounce on Wednesday. This marks a remarkable 30-day stretch with prices increasing by 10%, or 1.2% daily gain.

This rebound is largely attributed to the benign US consumer price data for July, which has reduced the likelihood of a September rate hike by the Federal Reserve. Futures now price around a 50% probability of a hike, down from 70% just last week.

The internal dynamics within the Fed also suggest a divided opinion on monetary policy. Three regional presidents dissented in favor of a hike during the last meeting, marking the first time since 2016. This development has sparked debate about the potential for future rate changes.