Gold, Silver Prices Rise as Soft CPI Data Reduces Fed Rate Hike Odds

Gold and silver prices rose on Wednesday following the release of July's Consumer Price Index (CPI) data, which showed a moderate increase in inflation. The figures met expectations, with headline CPI advancing 0.1% month-over-month and 3.4% annually, while core reading climbed 0.2% from the prior month and 2.5% year-over-year.

The soft CPI data reduced the likelihood of a Federal Reserve rate hike at the September policy gathering, but market-derived odds for a quarter-point increase still hover near 48%. The benchmark 10-year Treasury yield has pulled back from recent peaks to around 4.7%, and the U.S. dollar has softened.

The Strait of Hormuz remains a significant geopolitical factor influencing oil prices and inflation expectations, with Tehran insisting on U.S. concessions before reopening the passage. Brent crude is steady near $89 a barrel, while West Texas Intermediate is around $84, keeping fuel expenses elevated.