Gold prices soar as Fed rate cut expectations rise
Gold just had a big week—prices climbed after fresh US inflation numbers matched predictions, making investors think the Federal Reserve might finally cut interest rates soon.
Spot gold went up 0.8% to $3,778.62 per ounce on Friday, with December futures closing at $3,809.
The key inflation measure (PCE index) showed a 2.7% rise from last year, which was exactly what markets expected and pushed up chances of a Fed rate cut in October (88%) and December (65%).
Silver, platinum, palladium also gain
It wasn't just gold getting all the attention—silver jumped 2.6% to hit a 14-year high ($46.41/oz), and platinum rose 2.5% to its highest in over a decade, while palladium also gained nearly 3%.
Part of silver's boost comes from its growing use in solar panels, spurred by China's emissions pledge, and as a more affordable alternative to gold.
Now, everyone's waiting for more hints from Richmond Fed President Thomas Barkin and Fed Vice Chair Michelle Bowman about what's next for interest rates, but for now, market vibes are staying pretty optimistic about lower rates ahead.