The latest US inflation data has just been released, showing a new decline — possibly giving the Federal Reserve a green light to cut interest rates if conditions allow. 

• Headline CPI (YoY): 2.4% (vs. expected 2.5%), but higher than the previous reading 

• Headline CPI (MoM): 0.1% (vs. expected 0.2%) 

• Core CPI (ex. food & energy YoY): 2.8% (vs. expected 2.9%) 

• Core CPI (MoM): 0.1% (vs. expected 0.3%) 

These positive figures have increased expectations for a September rate cut by the Fed. Traders are now pricing in two rate cuts in 2025. 

Market Reaction: 

• US Dollar Index dropped to 98.695 📉

• Gold Futures rose 0.38% to $2,354.06/oz 

• Gold Bullion surged 0.95% to $2,354.24/oz 

• Wall Street Futures turned green: 

• Dow Jones up 92 pts (+0.25%) 

• S&P 500 up 0.36% 

• Nasdaq up 0.45% 

Conclusion: 

The lower-than-expected inflation numbers increase the likelihood of monetary easing, which is already energizing markets and investors alike.