Gold Prices Surge to Two-Month High on Cooling Inflation

Gold prices surged to a two-month high of $4,449 on Thursday due to cooling US CPI inflation, dovish FOMC outcome, lower oil prices, and an unexpected decline in July US payroll numbers.

The metal then edged lower as traders booked profits following an in-line US CPI report. At the time of writing this article on August 13, gold was trading at $4,463, down 1% for the day.

Despite the current volatility, analysts expect the metal to find support and test resistance at $4,500 after a brief consolidation.