Gold Gains After US Inflation Data Boosts Rate-Cut Optimism

  • Bullion climbs to over $2,700 an ounce, the highest in a month
  • Swap traders now pricing in Fed interest rate cut by July
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Gold climbed to the highest in a month after a surprise slowdown in US inflation revived expectations for Federal Reserve rate cuts this year.

Bullion traded at over $2,700 an ounce after the consumer price index — which excludes food and energy costs — rose 0.2% following four months of 0.3% gains. That signaled US officials may have room to ease policy sooner than previously thought.