Markets React to Soft Inflation Data as Gold Hits Two-Month High
Markets reacted to softer-than-feared US inflation data on Wednesday, resulting in a more than two-month high for gold and a surge in shares of Supermicro. The precious metal rose 1% to $4,412.68 per ounce, its strongest level since June 5, as July consumer prices matched economists' forecasts.
The Federal Reserve's probability of raising interest rates in September decreased to around 40%, down from 46% before the inflation report. Geopolitical risks remained a concern after separate attacks on shipping involving the US and Yemen's Iran-aligned Houthis added to uncertainty surrounding the Iran conflict.
Bitcoin traded below $63,300 despite inflation data supporting expectations for a steady Federal Reserve policy. Analyst Rekt Capital warned that repeated rebounds from the $63,000 level have continued to weaken, with 'the progressively weakening support at ~$63k (orange) is clear'.
Supermicro shares jumped 19% after delivering stronger-than-expected earnings and an upbeat outlook, while revenue nearly doubled to $11.1 billion from a year earlier. The company forecast first-quarter revenue of $14.5 billion to $15.5 billion and fiscal 2027 revenue of $65 billion to $72 billion.