Gold Prices Rise as US Inflation Report Dims Hike Expectations
Gold prices saw a slight increase on Thursday after a softer-than-expected US inflation report reduced expectations of a Federal Reserve rate hike in October. According to data, US inflation rose less than expected in August, while price pressures were revised lower for the prior month.
The report led to a decrease in expectations of an interest rate hike in October, with markets pricing in a 38% chance, down from 45% before the release. However, traders still see a 97% probability of an increase in December.
Gold prices rose 0.5% to $4,175.19 per ounce, while US gold futures for December delivery gained 0.4% to $4,204.80. Spot silver rose 1.2% to $61.11, platinum climbed 0.7% to $1,717.35, and palladium firmed 0.3% to $1,207.12.
However, gains for gold were limited by the US dollar holding near a two-month high, making dollar-priced metals costlier for holders of other currencies.