Gold price today: Gold rates climbed in the domestic futures market Wednesday morning, supported by weakness in the US dollar after inflation prints showed a slower-than-expected rise, fuelling hopes of a US Fed rate cut in September. MCX Gold October 3 contracts were up 0.06 per cent at ₹1,00,215 per 10 grams at 9:15 AM. MCX Silver September 5 contracts were up 0.49 per cent at ₹1,14,290 per kg at that time.
US Consumer Price Index (CPI) increased by 2.7 per cent year-on-year in July, holding steady from June’s rate. In June, too, US inflation had risen by 2.7 per cent, but it was its highest level since February.
However, July inflation data showed that the underlying price pressures, or core inflation, accelerated as the effects of President Donald Trump’s tariffs on imports began to influence the economy.
Meanwhile, India’s retail inflation fell to its slowest pace in eight years, slipping below the lower end of the Reserve Bank of India’s 2-4 per cent target range. The consumer price index (CPI) rose just 1.55 per cent annually in July, in the weakest increase since June 2017.
The moderation in US inflation has fuelled hopes of a Fed rate cut next month. According to Reuters, markets are pricing in about a 90 per cent chance of a rate cut in September. At least one additional rate cut is also expected by the end of the year.
(This is a developing story. Please check back for fresh updates.)
