Spot gold spikes above $4,438/oz as annual core CPI rises 2.5% in July The gold market surged to a fresh session high of $4,438.30 per ounce on Wednesday as U.S. inflation data for July showed cooling price pressures, aligning with economists’ expectations. The U.S. Bureau of Labor Statistics reported that the headline Consumer Price Index (CPI) rose 0.1% in July, following a 0.4% drop in June. This marked a return to growth after two consecutive months of declines, though the increase was in line with forecasts. Annual headline inflation, which measures all goods and services, rose to 3.4% over the past 12 months, slightly below the 3.5% recorded in June and below the 3.5% consensus expectation. Core CPI, which excludes volatile food and energy prices, increased by 0.2% in July, matching the 0.2% forecast and surpassing June’s flat 0.0% reading. Annual core inflation rose to 2.5%, a slight decline from the 2.6% recorded in June, and aligned with economists’ expectations. The data suggested that inflationary pressures, while still present, were moderating, which bolstered investor confidence in the gold market. Spot gold prices climbed 1.54% on the day, reflecting optimism that the Federal Reserve might delay or avoid further interest rate hikes. Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, noted that the CPI report provided the Federal Reserve with additional flexibility. “The market is reacting to a report that had no surprises, which means inflation isn’t reaccelerating,” he said. “Combined with the recent weak jobs report, this gives the Fed more time to wait before considering rate cuts. In a market where many expect hikes, anything that delays or eliminates the need for rate increases is viewed positively.#federal_reserve #us_bureau_of_labor_statistics #lpl_financial #northlight_asset_management #fifth_third_commercial_bank
