Gold Prices Soar on Fed Bets
Gold prices surged to a two-month high on Wednesday after US inflation data reinforced expectations of a pause in interest-rate action by the Federal Reserve. Spot gold rose 0.9% to $4,406.64 per ounce and briefly touched its highest level since June 5.
The metal also climbed above its 100-day moving average of $4,387.22, while US gold futures settled 0.6% higher at $4,467.50 per ounce.
The gains followed the release of US consumer inflation data, which showed prices increased 0.1% in July, in line with market expectations, after falling 0.4% in June.
Market participants reduced the probability of a rate hike to around 40% following the data, compared with 46% before the figures were released.
The decline reflected growing confidence that inflation remains under control despite ongoing economic and geopolitical uncertainties.