Gold prices surged 1.8% to $1,983 per ounce on Friday, May 3, 2024, marking a 17-month high and pushing it closer to the record of $2,000 per ounce reached in 2022. The rally was fueled by a combination of factors, including a weak U.S. dollar and escalating geopolitical tensions. The U.S. dollar weakened against major currencies, with the dollar index falling to 102.71, its lowest level in over a month.
**1. CPI to Show Modest Price Increases:**
* **Explanation:** Core inflation, which excludes volatile food and energy prices, is expected to remain elevated but show a slight increase. * **Context:** Inflation is still above the Fed’s target of 2% but has cooled from its peak. This is mainly due to easing supply chain disruptions and decreased energy prices.