Gold yesterday settled up by 0.5% at 60082 as top central banks switch to a more cautious posture about further moves in their year-long round of global monetary tightening. Data showed annual U.S. inflation rose at its slowest pace in over two years in June, cementing expectations that the Federal Reserve was closer to ending its fastest rate hiking cycle since the 1980s.
Two European Central Bank policymakers raised the prospect of an end to its longest string of rate rises. The U.S. Department of Commerce said its core Personal Consumption Expenditures price index increased 0.2% last month, compared to May’s increase of 0.3%. Inflation in the last 12 months rose 4.1%, down sharply from June’s 4.6% increase.