FX.co ★ Gold Rises After Weaker than Expected Inflation

Gold surged beyond $3,330 per ounce on Wednesday, following an earlier 1% increase, driven by cooler-than-predicted US inflation figures. This data bolstered anticipation that the Federal Reserve might initiate interest rate cuts by September. Consumer prices experienced a 2.4% year-over-year increase in May, up slightly from April's 2.3% but below the projected 2.5%. Core inflation remained steady at 2.8%, just under the forecasted 2.9%. Besides signals related to monetary policy, investors remain focused on the trade dynamics between the US and China. Representatives from both nations have revealed a preliminary agreement intended to revive their trade truce, which includes lifting constraints on Chinese exports of rare earth metals. Nonetheless, this agreement still requires formal ratification by both governments. Adding to the overarching uncertainty, a US federal appeals court has decided that extensive tariffs will remain in effect pending its review of a lower court's ruling that questioned the president's authority to implement those tariffs.