Gold Surges to Two-Month High as Inflation Data Supports Steady Fed Policy

Markets saw significant movement on Wednesday as investors reacted to softer-than-expected US inflation data. Spot gold rose by 1% to $4,412.68 per ounce, reaching its highest level in over two months since June 5. This comes as July consumer prices matched forecasts at 3.4% annually.

US gold futures settled 0.73% higher at $4,473. The reduced probability of a September rate hike, now around 40%, according to CME FedWatch data, is seen as supportive for the Federal Reserve's steady policy expectations.

The inflation report also had little impact on Bitcoin, which traded below $63,300 and erased earlier gains despite softer inflation data. Analyst Rekt Capital noted that repeated rebounds from this level have weakened support and may eventually break through.

Meanwhile, Super Micro Computer shares surged 19% after delivering stronger-than-expected earnings and an upbeat outlook, nearly doubling revenue to $11.1 billion. The company forecast first-quarter revenue of $14.5 billion to $15.5 billion and fiscal 2027 revenue of $65 billion to $72 billion.

SpaceX shares also rose around 9% after CEO Elon Musk presented an ambitious vision for artificial intelligence, stating AI could soon become the company's largest source of revenue.