Gold Surges Nearly 2% Despite Hot US Inflation Data; Silver Also Gains
New Delhi: Gold prices surprised markets on Friday, September 11, rising sharply despite fresh US inflation data that strengthened expectations of a possible interest-rate hike by the Federal Reserve next week.
Spot gold climbed 1.77% to around $4,393 an ounce, while silver also rallied, gaining about 2.41% to $65.12 per ounce during the session.
The gains were not limited to international markets. Precious metals also moved higher in India, with the MCX October gold futures contract rising 0.79% to ₹1,53,729 per 10 grams. Meanwhile, the MCX December silver futures contract advanced 1.05% to ₹2,36,562 per kg.
US Inflation Comes in Hotter Than Expected
The rally in bullion came even as the latest US inflation numbers pointed to continued price pressures.
US consumer prices increased more than economists had expected in August, potentially giving Federal Reserve policymakers another reason to maintain a tighter monetary stance.
According to data released by the US Bureau of Labor Statistics, the Consumer Price Index excluding food and energy — commonly referred to as core CPI — increased 0.3% in August from the previous month.
That was higher than the 0.2% rise expected in a Bloomberg survey.
On an annual basis, core consumer prices increased 2.4%.
Why Did Gold Rise Despite Rate-Hike Concerns?
Normally, expectations of higher interest rates can put pressure on gold because the precious metal does not generate interest or dividends. Higher rates can make interest-bearing assets relatively more attractive.
Yet gold continued to climb despite the hotter-than-expected inflation reading.
The move suggests that investors may be weighing several factors beyond the immediate interest-rate outlook, including expectations surrounding future monetary policy, currency movements, geopolitical uncertainty and continued demand for precious metals.
The sharp rise also highlights how strongly gold has been performing even when traditional market signals appear less supportive.
Silver Joins the Rally
Silver followed gold higher, gaining more than 2% during Friday’s session.
Unlike gold, silver has both investment and industrial demand, making its price particularly sensitive to expectations surrounding global economic activity as well as broader precious-metal sentiment.
With both metals advancing despite the latest inflation numbers, Friday’s session offered another reminder that bullion markets are being influenced by a combination of monetary policy expectations, investor demand and global economic uncertainty.
Markets will now closely watch the Federal Reserve’s next policy decision, with investors trying to determine whether the latest inflation figures will alter the central bank’s approach to interest rates.
News Source : Information for this article was gathered from a variety of reliable news outlets.
