Commodities
Gold Surges to Multi-Week Highs on Soothing Inflation Data
Gold prices surged to new multi-week highs on Wednesday, reaching $4440 per ounce as investors bet that the Federal Reserve will not raise US Dollar interest rates following inflation data matching analyst forecasts.
The release of the Consumer Price Index (CPI) showed annual inflation of 3.4% on the headline measure and 2.5% on the 'core' CPI excluding fuel and food, which matched Wall Street's consensus forecast.
Market forecasts for year-end Fed rates dropped to the lowest since the US central bank's mid-June 'no change' decision, extending the inverse relationship to gold prices now running since the start of March.