Gold prices rise to highest close in 4 weeks as US inflation slows

Gold alloys

Gold prices consolidated their gains at settlement today, May 15, thanks to the decline in the US dollar and bond yields to a five-week high, following the release of economic data that renewed investors’ hopes that the Federal Reserve would cut interest rates soon.

Bullion for June delivery skyrocketed 1.5%, or $35, to finish at $2,394.90 an ounce, the highest level for the most active contract since the end of trading on April 19 ($2,413.8/ounce).

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, plunged by 0.65% to 104.33 points at 08:43 pm Makkah time, hitting the lowest level since the April 10 session (104.02 points).

Recent economic data showed that the US consumer price index rose by 0.3% in April after climbing by 0.4% in March, below expectations that monthly prices would grow by 0.4%. On the other hand, retail sales stabilized last month, against expectations for a 0.4% hike on a monthly basis.

In a statement on the White House’s latest inflation report, US President Joe Biden said, “Fighting inflation and lowering costs is my top economic priority ... Inflation has fallen more than 60% from its peak, and core inflation fell to its lowest level in three years.”