Gold Pulls Back From Two-Month High After U.S. CPI Data Meets Expectations
TLDR
- Gold hit a two-month high of around $4,450 before pulling back 0.5% to $4,388 on Thursday
- U.S. CPI rose just 0.1% in July, matching expectations and easing near-term rate hike fears
- Markets now price a 38-40% chance of a September Fed rate hike, down from 46% pre-CPI
- Energy risks from the U.S.-Iran conflict and Strait of Hormuz disruptions keep inflation uncertainty alive
- Gold crossed its 100-day moving average for the first time since April, improving its technical outlook
Gold reached its highest price in over two months on Wednesday before retreating. Spot gold climbed to around $4,450 an ounce, driven by softer U.S. inflation data, before falling back 0.5% to $4,388.64 in early Thursday trading. Gold futures also slipped 0.5% to $4,446.12.
Silver and platinum followed gold lower. Silver dropped 0.4% to $65.08 an ounce, while platinum fell 0.6% to $1,746.71.
The pullback came after traders took profits ahead of and after the Consumer Price Index report. U.S. consumer prices rose just 0.1% in July from the prior month, matching forecasts. That reading suggested the energy shock tied to the U.S.-Iran conflict had not yet pushed inflation sharply higher.
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