Gold and Silver Soar as US Inflation Eases
The prices of gold and silver surged on Thursday as US inflation eased, prompting a decline in the dollar index. Gold futures rose to $4,180 per troy ounce, while silver futures gained to $59.17 per troy ounce.
The Comex gold futures contract jumped by $144 per troy ounce, its highest level in nearly six weeks. The MCX gold futures contract in the domestic market also advanced, reaching an intraday high of ₹1,43,400 per 10 grams.
The sharp decline in the dollar index was attributed to the release of the Personal Consumption Expenditures (PCE) Price Index, which fell by 0.1% on a seasonally adjusted basis in June. The annual inflation rate stood at 3.7%, in line with market expectations.
The US Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%. Traders reassessed the outlook for future rate hikes, with a 57% chance of a rate hike at the Fed's next meeting in September, down from about 77% previously.