Commodities
Home›Commodities›Precious Metals›Gold and silver rise as easing US inflation weakens th…
Gold and silver rise as easing US inflation weakens the dollar
Comex gold jumped $144 to $4,180 per troy ounce, while traders cut odds of a Fed hike by September to 57% after the June PCE inflation print.
Gold and silver prices climbed on 30 July as traders dialed back expectations for additional interest rate hikes following a softer US inflation reading, which pushed the US dollar lower and made precious metals more attractive to overseas buyers, LiveMint Markets said.
COMEX gold futures surged $144 per troy ounce to an intraday high of $4,180, while silver futures rose $1 to $59.17 per troy ounce, with both metals extending a winning streak into a second consecutive session.
The US dollar index fell to 100.3, its lowest level in nearly six weeks, after the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, showed June prices down 0.1% on a seasonally adjusted basis and annual inflation at 3.7%. The Fed kept its benchmark interest rate unchanged at 3.50% to 3.75%, and traders reassessed future tightening after the policy statement provided no new clarity.
According to the CME Group’s FedWatch Tool, the probability of a rate hike at the Fed’s 15 to 16 September meeting fell to 57% from about 77% before the announcement. LiveMint Markets also noted elevated geopolitical tensions after US forces reportedly carried out fresh strikes on Iran, with Iran’s Islamic Revolutionary Guard Corps warning about escalation and control of the Strait of Hormuz.
Latest closeGold $4,134.80 ▲2.4%|Silver $58.41 ▲1.9%|Dollar index 100.80 ▼0.6%