Video: LSE-listed uranium junior Power Metals lands in North America
The company holds a portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.
Gold prices jumped more than 1% on Wednesday as signs of cooling inflation in the US boosted hopes that the Federal Reserve could hit the breaks on its rate hike cycle sooner that previously thought.
Spot gold was up 1.2% at $1,955.66 per ounce by 11:39 a.m. EDT, approaching a one-month high. US gold futures also rose 1.2% to $1,960.30 per ounce.
[Click here for an interactive chart of gold prices]
US consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside, the latest economic data revealed.
In the 12 months through June, the CPI advanced 3.0%, compared with Reuters estimates of 3.1%.
“Gold gapped $10 higher on the softer-than-expected CPI print on hopes that a July hike might be the last one of the cycle,” said Tai Wong, a New York-based independent metals trader.
“If gold can break above the 50-day moving average at $1,960, it will trigger more bullish bets.”
Meanwhile, the dollar tumbled 1% to a more than one-year low against major peers after the US inflation print. Benchmark 10-year US note yields dropped to 3.8770%.
Inflation is slowing fast enough to allow the Fed to stop tightening US monetary policy after what is still widely expected to be an interest-rate hike at its meeting in two weeks time, traders bet on Wednesday.
Markets now see a 91% chance of a 25-basis-point Fed rate hike later this month.
(With files from Reuters)
