The prices of precious metals saw an uptick on Wednesday as investors responded to the latest inflation figures from the United States.
The annual inflation rate in April slowed to 3.4%, slightly below analysts’ expectations and down from March’s 3.5%.
This cooling of inflation has led traders to speculate that the Federal Reserve’s cycle of monetary policy tightening may be drawing to a close.
Gold and Silver jump
Gold prices rose by 0.64%, reaching $2,372.77 per ounce at 9:09 am ET.
Silver experienced a more significant surge, climbing 1.89% to sell at $29.16 per ounce at the same time.
These increases reflect a growing investor preference for precious metals amid hopes that the Federal Reserve might pause its interest rate hikes.
Platinum and Palladium gain
Platinum also saw gains, rising 1.46% to $1,052.57 per ounce at 9:10 am ET. Palladium traded 2.40% higher, priced at $992.25 per ounce concurrently.
The rise in these metals indicates a broader trend of increasing confidence in precious metals as a hedge against inflation and economic uncertainty.
What’s the market outlook?
As inflation shows signs of easing, the potential end of the Federal Reserve’s tightening cycle could support further gains in precious metals.
Investors will continue to monitor economic data closely, with precious metals likely to remain attractive assets in an environment of moderated inflation expectations.
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