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Gold prices charged higher and broke above the key $1,800 level on Wednesday after relatively tame U.S. inflation readings prompted bets that the Federal Reserve may not opt for aggressive rate hikes.
Spot gold rose 0.6% to $1,804.20 per ounce by 1249 GMT (8:49 ET). U.S. gold futures jumped 0.6% to $1,822.30.
U.S. consumer prices did not rise in July, due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.
"With (the) CPI number not coming as hot as expected, that portends that the Fed could potentially not raise rates quite (so) aggressively, which is positive for most asset classes, including gold," said David Meger, director of metals trading at High Ridge Futures.
Non-yielding gold tends do well in a low-interest rate environment, with bullion getting a further fillip from a sharp retreat in the dollar, bolstering its appeal among overseas buyers. [USD/]
"The next big factor for the gold market will be Fed officials' comments and hints on path of rate hikes," Meger added.
Spot silver rose 1.2% to $20.74 per ounce, while platinum gained 0.9% to $942.31.
Palladium advanced 1.5% to $2,248.98.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by David Holmes)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Wed, August 10 2022. 20:38 IST