SPDR Gold Shares Rally 1.3% After U.S. Inflation Falls to 2.4%
U.S. consumer-price inflation slowed to 2.4% in January from 2.7% in December, the weakest pace since May 2025 and below the 2.5% forecast. SPDR Gold Shares rallied 1.3% as gold futures climbed to $4,985 per ounce and silver futures jumped nearly 5%.
1. Inflation Data
U.S. consumer-price inflation decelerated to 2.4% year over year in January, down from 2.7% in December and below the 2.5% consensus, marking the slowest reading since May 2025. Monthly headline CPI rose 0.2%, slightly under estimates, while core CPI eased to 2.5%, its lowest level since March 2021.
2. Market Reaction
Precious metals led gains as SPDR Gold Shares surged 1.3% on the softer inflation report, with gold futures reaching $4,985 per ounce and silver futures rising about 5% to $78.72 per ounce. U.S. equity futures also reversed earlier losses, reflecting renewed risk appetite.
3. Implications for GLD
The unexpected inflation slowdown may reduce pressure for further interest-rate hikes, lowering real yields and bolstering gold demand. Continued moderation in price pressures could support SPDR Gold Shares, though housing and energy cost trends will influence near-term performance.