At around 2:18 a.m. on June 13, Vietnam time, spot gold prices rose 0.3% to $2,322.46 an ounce, after rising as much as 1% earlier in the day on a surprisingly lower U.S. consumer inflation report. U.S. gold futures for August 2024 delivery rose 1.2% to $2,354.8 an ounce.

The Fed left interest rates unchanged at the end of its two-day meeting on June 12, while policymakers said they expected only one rate cut in 2024.

The Fed neither lowered nor raised interest rates, so investors moved to less risky assets, including gold, causing prices to surge, said Jeffrey Christian, managing partner of CPM Group.

Fed Chairman Jerome Powell said the Fed’s inflation outlook was “quite conservative” and could be inconsistent with incoming data, and could be adjusted. He added that better-than-expected consumer price index (CPI) data was something officials were looking forward to.

Gold will continue to move along with employment and inflation data, said Tai Wong, an independent metals trader in New York.

CPI in May 2024 was unchanged from the previous month, lower than the expected increase of 0.1%. Core CPI increased by 0.2%, also lower than economists’ forecast of an increase of 0.3%.

The US dollar index fell 0.6% after the Fed’s decision to cut interest rates.

The probability of a Fed rate cut at its September 2024 meeting has dropped to about 64% from about 71% before the Fed announced its rate decision.

In other precious metals markets, spot silver rose 1.5% to $29.69 an ounce, platinum rose 1.2% to $962.85 an ounce and palladium rose 2.6% to $907.01 an ounce.

Early morning of June 13, in the Vietnamese market, Saigon Jewelry Company (SJC) listed the price of SJC gold at 74.98 – 76.98 million VND/tael (buy – sell).