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Gold futures rallied past $2,400/oz in Thursday’s trading following a surprise drop in U.S. consumer prices in June, raising hopes that the Federal Reserve will soon start cutting interest rates.
The latest data from the Bureau of Labor Statistics showed a 0.1% decline in consumer prices, marking the first negative reading in more than four years, and a core price gauge that excludes food and energy increased only 0.1% in June.
Comex gold (XAUUSD:CUR) for August delivery +1.9% to $2,424.80/oz, highest in at least six weeks, and September Comex silver (XAGUSD:CUR) +2.8% at $31.89/oz.
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“While one inflation report won’t make up policymakers’ minds on its own, the figures add to the body of evidence pointing toward a September rate cut, following last week’s softer-than-expected June jobs report, and coming after Chair Powell’s Congressional testimony earlier this week,” Pepperstone senior strategist Michael Brown told Kitco.