Gold jumped after June's US inflation reading came in softer than expected, pushing the dollar lower and cooling bets on near-term Federal Reserve rate hikes. Spot gold rose 2.1% to $4,083.99 an ounce early Tuesday, reversing a slide that had briefly touched its lowest level since July 1.
A cooler June inflation print sent gold higher and reset how traders read the Federal Reserve. Spot gold rose 2.1% to $4,083.99 an ounce early Tuesday, reversing a slide that had briefly taken it to its lowest level since July 1. At the same time, the dollar slipped 0.6%, making bullion cheaper for buyers holding other currencies.
Softer CPI resets Fed bets
The move traced back to June's Consumer Price Index. Inflation cooled to 3.5% year over year, and core inflation, which strips out food and energy, was flat month over month. When inflation prints softer than expected, markets tend to price in fewer rate hikes, which can pull down expected real interest rates.
That matters for gold because it pays no interest. If inflation-adjusted yields fall, the opportunity cost of holding bullion falls with them. Traders stepping back from a July 28-29 Fed meeting hike can quickly shift their forecasts for real rates, and that shift is often what moves gold most.
Where the price stands
Other readings put the metal in a similar range. Fortune reported gold trading at $4,074 per ounce at 9 a.m. Eastern, an $11 gain from the day before and $722 higher than a year earlier. CNBC pegged the spot price at $4,069.95 per ounce at the same hour.
The metal remains near record highs, with prices up more than 25% since early 2025 on inflation and uncertainty, a run that keeps gold in focus as a safe-haven asset. The next big driver may be fresh inflation data and Fed commentary, especially if higher oil prices revive worries that inflation could reaccelerate.
Sources: Finimize, Fortune, CNBC
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