Gold prices surged 1% to a six-week high after July inflation data matched forecasts, reinforcing bets on a Federal Reserve rate pause.
Gold prices rose nearly 1% to trade close to $4,400 per ounce, reaching their highest level since early June. The move followed July inflation data that aligned precisely with consensus estimates across all four key metrics in the release.
The print, widely anticipated by markets, failed to surprise traders, reducing uncertainty around the Federal Reserve’s next policy move. Gold’s rally reflects growing expectations that the Fed may pause its rate-hiking cycle, reducing pressure on non-yielding assets.
Market reaction saw gold hold steady near $4,400, signaling confidence in a potential policy shift amid stable inflation readings.