Gold nears one-month high as rate cut hopes revive

Gold prices steadied on Thursday after hitting their highest in more than a month, as U.S. core inflation data reinforced expectations for a rate cut, although gains were tempered by the announcement of a ceasefire between Israel and Hamas.

Spot gold was at $2,696.30 an ounce by 0301 GMT, having hit its highest since Dec. 12 earlier in the session. U.S. gold futures were up 0.3% at $2,725.20, according to Reuters.

“The slowdown in U.S. core inflation has revived hopes for a less dovish policy from the U.S. Federal Reserve this year,” said Jigar Trivedi, an analyst at Reliance Securities. “Core inflation slowed unexpectedly, while headline consumer prices showed no major upside surprises.”