Gold rose after a softer-than-expected inflation reading bolstered bets that the Federal Reserve will cut interest rates later this year. Underlying US inflation rose in May by less than forecast for the fourth month in a row, suggesting companies are finding ways to limit how much of higher costs from tariffs they pass through to customers. The dollar and bond yields pushed lower after the print, sending bullion higher by as much as 1.1% before paring some of the gains. Bullion typically benefits from a lower rate environment as it pays no interest. Gold is...
GBP/USD advances on Wednesday during the North American session, boosted by a weaker-than-expected consumer inflation report in the United States (US), which increased speculation that the Federal Reserve (Fed) may reduce borrowing costs twice in 2025. At the time of writing, the pair trades at 1.3537, up 0.34%The Consumer Price Index (CPI) in May rose less than estimates. Headline figures increased by 2.4% YoY, up from 2.3% a month ago but below forecasts for a 2.5% rise. Core CPI – which excludes volatile items like food and energy – advanced 2.8% YoY, unchanged compared with April's...
The U.S. dollar slid on Wednesday after data showed inflation in the world's largest economy rose less than expected last month, suggesting that the Federal Reserve could resume cutting interest rates sooner rather than later. The greenback, however, briefly trimmed losses after President Donald Trump said a U.S. trade deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities. A White House official also said the agreement allows the U.S. to charge a 55% tariff on imported Chinese goods. This...