US Inflation Figures Reduce Bets on Interest Rate Hike

US inflation figures were in line with expectations, causing bets on an interest rate hike by the Federal Reserve to be pared back. The Fed's next rate decision is set for September 16.

The Bureau of Labour Statistics reported that US consumer prices rose 3.4% year-over-year in July, down from a 3.5% increase in June. Excluding food and energy, annual core consumer price inflation eased to 2.5% in July, also in line with expectations.

The mixed result led to a slight softening of the pound against the dollar, while the yield on the US 10-year Treasury narrowed to 4.67%. Gold miners Fresnillo and Endeavour Mining rose as gold continued its recent progress.