The core CPI, which excludes volatile food and energy prices, also declined to 2.8%, giving traders more confidence that the Fed will pivot toward monetary easing.
According to CME FedWatch Tool data, markets are now pricing in three to four interest rate cuts by year-end, significantly increasing gold’s appeal as a non-yielding asset amid falling yields.
“The softer inflation data puts the Fed on a clearer path to cutting rates, and that’s fundamentally bullish for gold,” said Ilya Spivak, head of global macro at Tastylive.
Silver Tracks Gold’s Strength Amid Industrial Demand Optimism
Silver followed gold’s upward trajectory, trading around $31.35, with an intraday high of $31.37. The white metal has gained on both safe-haven flows and improved industrial demand prospects.
Easing inflation pressures are also reducing cost burdens for manufacturing, helping to boost sentiment across industrial commodities.
Technical indicators show silver’s bullish momentum remains intact as long as the price holds above $30.50.
