Gold price tops $4,500 in New York as tame US inflation cools Fed hike bets
Traders still put a 40% chance on a September Fed hike, and Saxo Bank says bullion's real test is the 200-day moving average just below $4,500.
Gold prices surged to a two-month high in New York on Wednesday, while silver followed closely behind. The Comex December gold contract reached $4,502.70 per ounce, marking its highest level since mid-June. Spot gold prices also rose, trading at $4,473.00, a 0.7% increase by early afternoon in New York. Similarly, spot silver climbed as much as 3.2% to $66.98 per ounce, its highest since June, and held a 0.9% gain at $65.54.
Platinum and palladium also experienced gains, with platinum rising 0.9% to $1,771.30 and palladium increasing 0.3% to $1,374 per ounce. Consumer prices in the United States remained modest, with the CPI rising by 0.1% in July and 3.4% year-over-year. Despite a 40% chance of a Federal Reserve interest rate hike in September, the likelihood of an October hike dropped to around 60%.
Analysts noted that gold had yet to confirm a new bull-market advance, with support around $4,200 being crucial and the major upside target being the 200-day moving average, currently near $4,500.
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