WASHINGTON (dpa-AFX) - Gold prices moved higher on Tuesday, gaining for a fifth straight session, as the dollar eased and bond yields dropped after data showed producer prices rose less than expected in the month of July.
The dollar index dropped to 102.74, losing nearly 0.4%.
Gold futures for August ended up $4.30 or about 0.17% at $2,466.70 an ounce, a new record high.
Silver futures for August ended lower by $0.222 or about 0.8% at $27.695 an ounce, while Copper futures for August dropped to $4.0360 per pound, losing $0.0190.
Data from the Labor Department said the producer price index for final demand inched up by 0.1% in July after rising by 0.2% in June. The uptick by producer prices matched economist estimates.
Meanwhile, the report said the annual rate of producer price growth slowed to 2.2% in July from an upwardly revised 2.7% in June. Economists had expected the annual rate of producer price growth to decelerate to 2.3% from the 2.6% originally reported for the previous month.
The notable slowdown by the annual rate of price growth has increased confidence the Federal Reserve will lower interest rates at its monetary policy meeting next month.
CME Group's FedWatch Tool is currently indicating a 54.5% chance the Fed will cut rates by 50 basis points and a 45.5% chance of a 25 basis point rate cut.
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