Gold Surges Past $4,400, Driven by Cooling U.S. Inflation

Gold futures extended gains Wednesday to hold above the $4,400 level.

The July Consumer Price Index (CPI) report showed annualized inflation cooled to 3.4%. This result matched market expectations and increased speculation that the Federal Reserve will pause rate hikes.

The CME FedWatch Tool now indicates a 56% probability of steady rates in September. A potential pause benefits gold by reducing the opportunity cost of holding the non-yielding asset.

Ongoing geopolitical tensions in the Middle East provided additional price support.