Gold and silver prices were slightly firmer on Thursday, reaching their highest level in nearly a month as the U.S. dollar tumbled in the wake of Wednesday’s CPI report.
Price action
-
Gold futures for August delivery
GC00,
+0.11% GCQ23,
+0.11%
gained $3.70, or 0.2%, to $1,959 per ounce on Comex, its highest level since mid-June. -
Silver futures for September delivery
SI00,
+1.23% SIU23,
+1.23%
gained 18 cents, or 0.8%, to $24.49 per ounce. -
Palladium futures for September
PAU23,
-0.84%
increased by $17, or 1.3%, to $1,297 per ounce, while platinum futures for October
PLV23,
+2.01%
gained $16.40, or 1.7%, to $973 per ounce. -
Copper futures for September
HGU23,
+1.04%
gained 9 cents, or 2.3%, to $3.85 per pound.
Market drivers
U.S. consumer price inflation fell to its lowest level since August 2021 in June, according to the CPI data released on Wednesday, allowing Treasury yields to fall sharply. Investors immediately heralded the report as a game changer that bolstered expectations that the Federal Reserve might only deliver one more interest-rate hike in July before leaving rates on hold until some time next year.
“A tame U.S. inflation report has the marketplace thinking the Federal Reserve may be about done raising interest rates. That’s bullish for commodity markets, including the metals,” said Jim Wyckoff, senior analyst at Kitco.
Metals prices received another boost from a sharply weaker U.S. dollar, which has fallen to its lowest level against its main rivals in more than a year, according to the ICE U.S. Dollar Index
DXY,
a closely watched gauge of the greenback’s value.
The index was off by 0.4% at 100.15 in early trade Thursday.
This post was originally published on Market Watch
