Gold hits 2-month high after US July CPI shows slowdown
Business
Gold just hit its highest point in two months, thanks to new US inflation numbers.
July's Consumer Price Index rose 3.4%, a bit less than June's 3.5%.
This slowdown means the Federal Reserve is less likely to raise interest rates soon, and traders are now rethinking what might happen at the next big Fed meeting.
Gold gains as Fed odds drop
Spot gold climbed 0.6% to $4,433.62 per ounce, while US gold futures for December delivery also went up by 0.6% to $4,493.
With the chance of a rate hike dropping from 54% last week to just 40%, gold is looking more appealing since lower rates make it cheaper to hold assets that don't pay interest.
Investors are keeping an eye out for more signs of easing price pressures later today with the Producer Price Index release.