FTSE 100 Miners Climb as Soft US CPI Fuels Fed Rate-Cut Hopes

UK-listed mining stocks staged a strong rebound in trading today, with the FTSE 100 mining sector leading gains after the latest US inflation data reignited expectations of further Federal Reserve easing, sending precious metals sharply higher and lifting sentiment across the commodities complex.

Glencore (GLEN) topped the risers board, jumping 3.28% to 531.30p, up 16.90p on the day. Rio Tinto (RIO) climbed 3.00% to 6,935.00p, adding 202.00p, while Anglo American (AAL) advanced 2.76% to 3,683.00p. Antofagasta (ANTO) rounded out the pack with a 2.52% rise to 3,869.00p.

The rally was underpinned by a softer-than-expected US Consumer Price Index reading, which showed headline inflation cooling and core prices essentially flat month-on-month. According to analysis from RBC Economics, the print “buys the Fed time” on rates, even if it doesn’t yet confirm a firm disinflationary trend, with tariff-driven pressures continuing to ripple through core goods prices.

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The cooler inflation backdrop sent precious metals soaring, with spot gold up 1.9% to $4,076 an ounce and spot silver rallying 2.2% to $58.91, as traders priced in a higher probability of continued Fed accommodation. Lower rates typically weigh on the dollar and boost non-yielding assets like bullion, while also easing financing costs for capital-intensive miners.

Diversified miners with exposure to both base and precious metals benefited most, as investors rotated back into the sector on hopes that a more dovish Fed trajectory could support global demand and commodity prices heading into year-end. Markets now await further US data releases for confirmation of the disinflation trend before the Fed’s September meeting.