Gold price back above $5000 with mild inflation boosting expectations of Fed rate cuts.

The price of gold is rising, with traders increasing their bets on a rate cut by the Federal Reserve after data showed moderate inflation. Some investors bought gold on dips on Thursday after a significant sell-off. The relatively mild inflation performance in the U.S. in January eased concerns about a sharp increase in inflation, boosting expectations for a rate cut by the Federal Reserve. Following the data release, the yield on 10-year U.S. Treasury bonds fell, with interest rate swap traders estimating a 50% chance of a third rate cut before December. This pushed the price of gold up by 2.3% at one point. Interest rate cuts are generally favorable for interest-free assets such as gold. As of the time of writing, spot gold has risen by 1.9% to $1,016.90 per ounce. Silver has risen by 3.4% to $77.81 per ounce, and platinum and palladium prices have also risen. The U.S. dollar spot index has remained relatively unchanged.