Gold reclaims $2,400 mark after US inflation data lifts rate-cut bets
Gold hits more than one-month high
U.S. 10-year bond yields slip to 4-month low
Silver up 2%; platinum up more than 1%
Updates prices
By Brijesh Patel
July 11 (Reuters) -Gold prices jumped more than 2% on Thursday, breaking above the $2,400 per ounce level, after data showed U.S. consumer prices unexpectedly slipped last month, boosting bets for interest rate cuts by the Federal Reserve.
Spot gold XAU= was up 1.8% at $2,414.75 per ounce by 2:37 p.m. ET (1837 GMT), its highest since May 22.
U.S. gold futures GCcv1 settled 1.8% higher to $2,421.90.
"Gold surges above $2,400 as the friendly CPI number nearly cements a September rate cut. Gold bulls are likely to push for a new all-time high perhaps as soon as next week," said Tai Wong, a New York-based independent metals trader.
Spot gold prices hit a record high of $2,449.89 per ounce on May 20.
U.S. consumer prices unexpectedly fell and the annual increase was the smallest in a year, reinforcing views that the disinflation trend was back on track and drawing the Fed another step closer to cutting interest rates.
Interest-rate futures prices reflected about an 85% chance of a rate cut at the Fed's September meeting, compared with about a 70% chance seen before the data. FEDWATCH
Non-yielding bullion's appeal tends to shine when interest rates fall.
Following the U.S. inflation data, the dollar =USD dropped to a more than one-month low, making gold more attractive for other currency holders, while the benchmark U.S. 10-year Treasury yield US10YT=RR fell to a four-month low.
Fed Chair Jerome Powell, over his two days of commentary before the Senate and House committees that oversee the central bank, indicated the Fed was edging closer to a rate cut decision.
"Given the overall trajectory on monetary policy and gold demand I think the bull run is not over yet," said Zain Vawda, market analyst at MarketPulse by OANDA.
Meanwhile, spot silver XAG= climbed 2% to $31.44 per ounce, its highest since May 31. Platinum XPT= rose 1.4% to $1,002.86 and palladium XPD= gained 0.7% to $992.75.
Spot gold price in USD per oz https://reut.rs/3zNaTzF
Reporting by Brijesh Patel in Bengaluru; Editing by Shounak Dasgupta and Mohammed Safi Shamsi
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