Gold Tops $2,400 as Easing Inflation Bolsters Rate-Cut Optimism
- Pivot to lower interest rates is seen raising bullion’s appeal
- US consumer prices decline for the first time since 2020
Gold prices have hit record highs this year on a wave of buying by investors and central banks.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Gold jumped above $2,400 an ounce to close in on the record price set in May, after an unexpected drop in US consumer prices bolstered hopes that the Federal Reserve will soon start cutting interest rates.
Gold climbed as much as 2.3% after Bureau of Labor Statistics data showed a 0.1% monthly decline in consumer prices, marking the first negative reading in more than four years. Another key core price gauge — which excludes food and energy — rose only 0.1%, further supporting the case for a September rate cut.