Chicago [US], July 13: Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as U.S. inflation slowed.
The most active gold contract for August delivery rose 24.60 U.S. dollars, or 1.27 percent, to close at 1,961.70 dollars per ounce.
The U.S. Labor Department reported Wednesday that U.S. consumer price index (CPI) rose 0.2 percent in June and was up 3 percent from a year ago, the lowest level since March 2021. Excluding food and energy, core CPI increased 0.2 percent and 4.8 percent, respectively.
U.S. dollar index and U.S. Treasury yields went lower following weaker than expected inflation growth, which also fuel market expectations that the Federal Reserve may soon end its cycle of interest rate hikes, market analysts hold.
Federal Reserve Bank of Richmond President Thomas Barkin said Wednesday in Arnold, Maryland, that growth in U.S. consumer prices is still too quick even as it slowed in June, reiterating the central bank's commitment to restoring inflation to the goal rate.
"Inflation is too high," Barkin said. "If you back off too soon, inflation comes back strong, which then requires the Fed to do even more."
In a blog post on bank stability, Minneapolis Federal Reserve President Neel Kashkari said U.S. government bank regulators should run a new "high-inflation" stress test to identify at-risk banks and be able to better gauge their capital shortfalls.
Kashkari said the outlook for some regional banks depends "largely" on what happens to inflation.
Silver for September delivery rose 1.029 dollars, or 4.42 percent, to close at 24.31 dollars per ounce. Platinum for October delivery rose 24.20 dollars, or 2.60 percent, to close at 956.60 dollars per ounce.
Source: Xinhua