Gold Nears $4,400 as Cooling Inflation Fuels Rate-Cut Bets
Cooling U.S. inflation and a weak July jobs report lifted December gold futures above $4,400 as traders bet the Federal Reserve will pause rate hikes.
- Gold opened above $4,400 for a fourth consecutive session on Thursday, extending a rally that pushed the precious metal up nearly 10% over the past month as traders awaited the Producer Price Index report.
- The rally traces back to a weak jobs report earlier this month that badly missed expectations, with the U.S. economy shedding roughly 23,000 jobs against forecasts of about 80,000 in gains, while unemployment held at 4.1%.
- Despite the recent gains, gold remains well below the record set in Jan, following a sharp 29.7% slide to a low around $3,930 in the first half before the rebound began.
- Yahoo Finance Fed correspondent Jennifer Schonberger said cooling inflation "bolsters the case for the Federal Reserve to wait" on rate moves next month, noting "it's hard to see them hiking in September now that we've had two back-to-back months of cooling inflation."
- Longer-Term forecasts remain bullish, with some analysts projecting gold could resume its upward trajectory toward $5,000 or higher, supported by persistent Central bank buying and continued Global inflation amid flat mine production growth of 1% to 2% annually.
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Inflation throws a curveball... Gold and stocks rise while oil falls | Al Bawaba
Gold rises to over two-month peak as spot price hits $4,406.64 on US inflation data
Gold rose to a more than two-month high on Wednesday after a US inflation reading matched expectations.Spot gold rose 0.9 percent to $4,406.64 per ounce by 17:30 GMT, and climbed above the 100-day moving average, which is currently at $4,387.22. Bullion climbed more than 1 percent to its highest level since 5th June earlier in the session.US gold futures settled 0.6 percent higher at $4,467.5.Among other metals, spot silver rose 1.3 percent to…
Gold prices, which rose to their highest level in two months following US inflation data that came in line with expectations, are trading sideways ahead of the Producer Price Index (PPI) data, which will provide clues about the Federal Reserve's (Fed) interest rate decisions.
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