Rising Fed rate cut bets continue to provide support, and gold prices fluctuate at high levels

(1) Gold prices fluctuated at highs on Thursday, holding all pump gains in the previous session, as the dollar and Treasury yields weakened on the possibility of a Fed rate cut as early as September after the release of U.S. inflation data. (2) Spot gold pumped 0.1% at $2,387 an ounce, having earlier hit a three-week high of $2,397.19 an ounce. (3) The dollar index remained weak, updating a one-month low of 104.07 earlier, causing dollar-denominated gold to fall against other coin holders. U.S. 10-year Treasury yields also hit a longest-month low. (4) Tim Waterer, chief market analyst at KCM Trade, said: "Gold is on the rise amid cooling inflation and looks poised to capture the $2,400 mark. However, the US dollar or US Treasury yields may rebound, which could be the biggest obstacle for gold prices before the end of the week. ” (5) The cooling of U.S. consumer prices, coupled with last week’s lackluster jobs report and a weaker-than-expected U.S. non-farm payrolls report for April, is good news for Fed policymakers, who are waiting to see new developments on inflation before drop borrowing costs. (6) Spot silver falls 0.7% to $29.43 an ounce, having hit its highest since February 2021 at 29.82 at the start of the session. (7) ANZ analysts wrote in a note: "Silver is catching up with gold. Against the backdrop of a pump in gold prices, strong fundamentals are likely to spur investor interest in silver. They also said silver would trade above $31 an ounce by the end of 2024