Gold Hits Three-Week High as Cooling Inflation Fuels Fed Rate Cut Hopes

Gold prices reached a three-week high on Wednesday, driven by a weaker dollar and lower yields after the U.S. consumer price index rose less than expected in April, increasing the likelihood of Federal Reserve interest rate cuts. Spot gold rose 0.4% to $2,367.29 per ounce, and U.S. gold futures rose 0.6% to $2,372.70, as investors anticipated that cooling inflation could lead to rate cuts by September.