Spot gold spikes above $4,438/oz as annual core CPI rises 2.5% in July

The gold market is setting fresh session highs after the latest data showed U.S. inflation pressures cooled in line with expectations last month. The headline Consumer Price Index (CPI) rose by 0.1% last month after June’s -0.4% decrease, the U.S. Bureau of Labor Statistics announced on Wednesday. The inflation data matched expectations, as economists were looking for a 0.1% increase. The report noted that annual headline inflation rose by 3.4% over the last 12 months, also in line with the consensus forecast of economists, and below the 3.5% reported in June. Core CPI, which strips out volatile food and energy prices, increased by 0.2% last month, in line with the 0.2% expectation and above June’s flat 0.0% reading. Annual core inflation rose by 2.5% last month, also in line with economists’ expectations, and following the 2.6% rise posted in June.

The gold market shot to a fresh session high of $4,438.30 following the latest inflation data. Spot gold last traded at $4,435.58 per ounce, up 1.54% on the day.