Gold prices extended their rally, reaching an intraday high of $2,424. The trend was bolstered by softer US CPI data, sparking hopes for Fed rate cuts in 2024. The US Bureau of Labor Statistics revealed that consumer prices deflated in June, reigniting expectations for rate cuts and putting downward pressure on the US dollar, contributing to gold’s gains.
However, gold lost some gains as the People’s Bank of China (PBoC) stopped gold purchases in June, continuing the trend from May. By the end of June, China held 72.80 million troy ounces of gold.