Gold Extends Rally to Two-Month High as Markets Await U.S. CPI Data
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Gold futures edged higher Monday to a near two-month high, extending last week's 7%+ surge — the biggest weekly gain since January; markets now await Wednesday's CPI print to gauge the Fed's rate path.
How much did gold and silver gain?
Comex August gold rose 0.5% to $4,361.80 per ounce, the highest settlement since June 4.
Comex August silver jumped 2.8% to $65.106 per ounce, the highest settlement since June 22.
This means → silver is outpacing gold by a wide margin, signaling capital is spilling into the broader precious-metals complex.
What drove last week's big rally?
Gold posted a weekly gain of over 7%, the largest since January.
Two core drivers: cooling Fed rate-hike expectations + sustained central-bank gold buying.
In plain terms = the market believes rates won't go higher, and central banks keep stockpiling — both forces push price in the same direction.
What is the most critical data point this week?
The U.S. CPI (Consumer Price Index) is due Wednesday; the PPI (Producer Price Index) follows Thursday.
Analyst Jim Wyckoff noted: "Inflation is cooling slightly; markets expect the report won't show overheating."
This means → if CPI confirms the cooling trend, Fed rate-cut bets will strengthen further, giving gold more room to run.
What do technicals and sentiment say?
StoneX strategist Bob Haberkorn said: "Gold's overall technical momentum is quite strong right now."
He noted cautious positioning, yet fear of missing a move back above $4,500 is keeping buyers engaged.
This reflects a "scared-but-buying" dynamic — the higher gold climbs, the greater the FOMO, which itself fuels the rally.
Could geopolitics add more fuel?
Iran said it will reopen the Strait of Hormuz only after the U.S. meets several conditions; oil prices surged in response.
President Trump said he would rely on a naval blockade to pressure Iran rather than launch new airstrikes.
This means → Middle East tensions are unlikely to ease soon, and safe-haven demand will continue to underpin gold.
Content is for reference only, not financial advice.