On Thursday, gold and silver prices saw a slight uptick, reaching their highest level in almost a month. This surge was attributed to the decline of the U.S. dollar following the release of Wednesday’s CPI report.
Price Action
- Gold futures for August delivery (GC00) gained $3.70, or 0.2%, to reach $1,959 per ounce on Comex. This marks its highest level since mid-June.
- Silver futures for September delivery (SI00) increased by 18 cents, or 0.8%, to $24.49 per ounce.
- Palladium futures for September (PAU23) rose by $17, or 1.3%, to reach $1,297 per ounce.
- Platinum futures for October (PLV23) gained $16.40, or 1.7%, to reach $973 per ounce.
- Copper futures for September (HGU23) climbed by 9 cents, or 2.3%, to $3.85 per pound.
Market Drivers
In June, U.S. consumer price inflation fell to its lowest level since August 2021, according to the CPI data released on Wednesday. This led to a significant drop in Treasury yields. Investors interpreted this as a potential game changer, with expectations growing that the Federal Reserve might only implement one more interest-rate hike in July before keeping rates on hold until next year.
Jim Wyckoff, senior analyst at Kitco, commented, “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.”
Metals prices also received a boost from the weakening U.S. dollar, which recently hit its lowest level against other major currencies in over a year. The ICE U.S. Dollar Index, a closely watched gauge of the greenback’s value, experienced a decrease of 0.4%, reaching 100.15 in early trading on Thursday.
