Gold price jumps as US dollar hits 15-month low after ease in US CPI data

livemint.com:

Gold rate today: Following US dollar index slide to 15-month low on easing US inflation, gold price today ascended in early morning deals in Asian and Indian markets. Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX), yellow metal opened higher at ₹59,230 per 10 gm levels and went on to hit intraday high of ₹59,288 per 10 gm within few minutes of commodity market's opening. In international market, oscillating around $1,955 per ounce levels.

Likewise, silver rate today opened higher at ₹73,530 per kg levels in early morning deals and went on to hit intraday high of ₹73,810 per kg within few minutes of commodity market's opening bell today. In international market, silver price is oscillating around $24.10 per ounce levels. On why gold and silver prices are rising today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are rising because US CPI data released yesterday has reported that the US inflation has hit two year low.

Du to this, US dollar index has nosedived to 15 months low. Hence, bullion metals are appreciating across globe." Commenting upon the US CPI data, Apurva Sheth, Head of Market Perspectives and Research at, SAMCO Securities said, “US CPI Inflation came in at 3% Y-o-Y basis. This is the lowest reading since March 2021.

The main reason behind this fall is a high base effect and general fall in prices. With this inflation reading the gap between US interest rates and inflation has widened even further. US interest rates are at 5.25% while inflation is just above Feds comfort level of 2%.