Spot Gold Jumps 2% to $4,087.40 as U.S. June CPI Falls 0.4%
Updated
Updated · Kitco NEWS · Jul 14
Spot Gold Jumps 2% to $4,087.40 as U.S. June CPI Falls 0.4%
3 articles · Updated · Kitco NEWS · Jul 14
Summary
$4,087.40 spot gold traded just below $4,100 after the CPI report triggered an initial nearly $60 jump and revived demand for the metal.
A 0.4% June drop in headline CPI—versus forecasts for a 0.1% decline—cut annual inflation to 3.5%, while core CPI was flat on the month and slowed to 2.6% year over year.
A 5.7% monthly fall in the energy index drove the cooling, more than offsetting continued increases in shelter and food, according to the Labor Department.
Fed expectations shifted sharply after the data: markets moved from pricing two rate hikes this year to just one by December, supporting gold's rebound.
Analysts still warn inflation risks remain, citing core prices above the Fed's 2% target, rebounding oil and broader geopolitical and policy uncertainty.