Gold Tops $4,500 as Tame Inflation Eases Fed Hike Bets

Gold prices surged to a two-month high on Wednesday as tame US inflation cooled expectations of an imminent Federal Reserve interest rate hike. Comex December gold touched $4,502.70 per ounce, its highest print since mid-June.

The spot price rose 1.6% to $4,438.20 and was 1.2% higher at $4,422.34 as of 11 a.m. in New York. Central bank buying led by China contributed to the recovery.

Comex September silver climbed 3.2% to $66.98 an ounce, its highest since June, with spot silver adding 2.4% to $66.25.