---
title: "Why are Gold and Silver Up Today, 8/12/26?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295699196.md"
description: "Gold and silver prices rose on August 12, 2026, following July CPI data showing inflation at 3.4%, in line with expectations but down from June's 3.5%. This lower inflation reduced expectations for Federal Reserve interest rate hikes, decreasing the opportunity cost of holding non-interest-bearing precious metals. Consequently, odds of a September rate cut increased, driving gains in gold and silver."
datetime: "2026-08-12T17:45:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295699196.md)
  - [en](https://longbridge.com/en/news/295699196.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295699196.md)
generator: "portal-rs"
---

# Why are Gold and Silver Up Today, 8/12/26?

Both gold (XAUUSD) and silver (XAGUSD) are trading higher on Wednesday after tame Consumer Price Index (CPI) data from the Bureau of Labor Statistics (BLS) sent interest rate hike expectations lower.

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On an annual basis, CPI, an indicator of inflation, rose 3.4% in July, in line with expectations and down from 3.5% in June. With lower inflation, pressure comes off the Fed to raise rates. That's because the central bank tends to raise rates when inflation is elevated and hold rates steady or lower them when price pressures ease.

## **Gold and Silver Gain as Rate Hike Odds Fall**

Gold and silver benefit from lower rates since the precious metals do not generate interest. As interest rates fall, the opportunity cost of holding gold and silver instead of interest-bearing assets, such as bonds, decreases.

Following the CPI update, the odds of a 25-bps rate hike at the September 16 Federal Open Market Committee (FOMC) meeting dropped to 38.1% from 48.4% a day ago, according to the CME FedWatch tool. Furthermore, the odds of at least one rate hike by the end of 2026 fell to 72.5% from 78.8%.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**