Gold prices surge near weekly highs after in-line CPI data reduces Fed rate hike expectations and the USD weakens.
Gold prices rose $67 to $4434, nearing a weekly high, as softer US economic data, including today’s in-line CPI report, eased Fed rate hike concerns. The metal briefly touched $4440 after the release, reflecting broad USD selling.
The rally follows a nearly 10% gain since August 5, driven by weaker-than-expected non-farm payrolls and speculation of US intervention to weaken the dollar. Market sentiment remains bullish amid geopolitical uncertainty, though potential oil price spikes could pose risks.
Saudi Aramco’s Q2 call highlighted resilient global oil demand, masked by 9 million barrels per day of strategic reserves and 2 million barrels per day in demand management, signaling supply constraints ahead.