Gold rises on positive news of U.S. inflation. What a near-term Fed rate cut could mean for gold price stabilityPrices of gold and silver continued a steady upward trend on Wednesday, June 12 following a positive turnaround on Wall Street as investors were bullish over near-term rate cuts as U.S. inflation data showed that prices are rising at its slowest pace in nearly three years.
The benchmark S&P index rose 1.24% gaining 66.92 points by the start of the morning, while the Dow Jones Industrial Average opened at 195.92 points higher, or 0.51%. Elsewhere the tech-heavy Nasdaq Composite added 1.82% climbing 315.86 points to 17,659.40. Historically, investors had fallen back onto gold and other inflation-hedging strategies during periods of uncontrollable inflation and an overheating economy. However, now that prices have continued a downward trend, and with interest rates still sitting at a two-decade high, would there still be an opportunity for many to take a position on gold before expected rate cuts?
An S&P Global Survey showed that investor optimism rose 28% in May, considered the highest reading since 2021. Gold prices have largely benefited from the broader metals rally, with the market seeing commodities such as copper and silver entering new market records.
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