Gold prices rose on Thursday morning after the release of July’s Consumer Price Index (CPI). Spot gold prices rose 0.2% to $2,452.56 an ounce while white gold rose 0.4% to $2,490.40 per ounce. The positive CPI report helped to renew investor confidence and particularly the appetite for risk.
With CPI coming in softer than expected, investors are expecting a 25 basis point cut by the Federal Reserve at their policy meeting in September, the CME Fedwatch tool found. The tool earlier determined that traders were largely split between a 25 basis point and 50 basis point cut during the next policy decision.
Other precious metals also rose following the CPI data release, with platinum increasing 0.5% to $935.65 per ounce while silver futures rose 1.6% to $27.773 an ounce. Multiple diversified metals were also on the rise, with benchmark copper futures rising 0.5% to $8,991.50 per ton while one-month futures were up 0.5% at $4.065 per pound. Despite the recent spike in prices, copper prices are expected to slip as Chinese demand appears to be slowing down.