Centrus says Russia canceled TENEX’s licence to export low-enriched uranium to US
Russia, the world's largest supplier of enriched uranium, said last week it had imposed temporary restrictions on the fuel's export to the US.
Gold has once again crossed the $2,400-an-ounce mark to close in on another record after an unexpected drop in US consumer prices bolstered hopes of a Federal Reserve interest rate cut in September.
Spot gold jumped 2.0% to $2,418.78 an ounce by 9:10 a.m. ET Thursday, for its highest in almost two months. US gold futures were up 1.6% at $2,419 an ounce in New York.
The rally comes on the back of new US data showing a 0.1% monthly decline in consumer prices, marking the first negative reading in over four years. Another key core price gauge that excludes food and energy advanced only 0.1% in June, further supporting the case for a Fed rate cut.
The figures indicate that inflation has resumed its downward trend after a flare up at the start of the year, while broader economic activity appears to be slowing. Earlier, Federal Reserve Chair Jerome Powell said the central bank doesn’t need inflation below 2% before cutting rates.
High rates have been a headwind for gold as a non-interest-bearing asset, but prices have still hit record highs this year on a wave of buying by investors and central banks. Thursday’s rally brought the precious metal into striking distance of the all-time high of $2,450.07 set in May.
“Below-expected inflation data is compounding the precious metals rally,” Ryan Mckay, a senior commodity strategist at TD Securities, said in an emailed note. “A key macro cohort that has been on the sidelines thus far is increasingly likely to regain interest in gold.”
(With files from Bloomberg)
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