Gold and silver prices surged during midday U.S. trading on Thursday, buoyed by a U.S. inflation report that, while slightly higher than expected, was not seen as problematic. The increase was also supported by an unexpected rise in weekly U.S. jobless claims. December gold climbed $18.20 to $2,644.10, while December silver rose $0.65 to $31.32.
The U.S. Consumer Price Index (CPI) for September showed a monthly increase of 0.2%, just above the anticipated 0.1%. On a year-over-year basis, the CPI rose 2.4%, slightly lower than August’s annual increase of 2.5%. The core CPI, excluding food and energy, grew 0.3% month-over-month, surpassing expectations of 0.2%. Annually, the core CPI increased 3.3%, up from 3.2% in August.
The higher-than-expected CPI was balanced by a rise in weekly U.S. jobless claims, which hit 258,000, compared to the forecasted 230,000. Overall, the data has been interpreted as favorable for the precious metals market and unlikely to affect the Federal Reserve’s current monetary policy, which is expected to remain accommodative through the end of the year.
Looking ahead, the U.S. producer price index (PPI) report for September is expected on Friday, with projections for a 0.1% monthly increase, following a 0.2% rise in August.
In broader markets, the U.S. dollar remained steady, while Nymex crude oil prices rose to around $75.50 per barrel. The 10-year U.S. Treasury yield stood at 4.082%.
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