Gold ticks up, with spot gold up over $10 an ounce, taking it over two-month high as a key U.S. inflation report comes in flat, relieving some of the pressure for an imminent increase in interest rates.
The consumer price index report released Wednesday, key inflation indicator for the Fed, showed prices moderating, raising hopes that an imminent interest rate hike was less urgent. The Bureau of Labor Statistics report showed a seasonally adjusted increase of 0.1% during July, with the core CPI rising 0.2%. On an annual basis, the inflation rates were 3.4% and 2.5%. All of the readings were line with forecasts.
Speculation about higher rates – which would be bearish for gold, while keeping rates unchanged would be bullish – has fluctuated on news out of the Iran war. The conflict has boosted many costs, particularly of oil prices, because of the shutdown of the Strait of Hormuz. The Fed closely watches both inflation and labor market data when setting monetary policy.
The next economic report, the producer price index, comes out on Thursday. The yellow metal surged last week after weaker-than-expected labor market data curbed expectations of multiple rate hikes this year.
December gold futures rose 0.5% Tuesday to settle at $4,441.10 an ounce on Comex, and the front-month contract is up 0.9% so far this week. Bullion rose 1.7% in July, its first monthly increase since February, after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $46.80 (+1.05%) an ounce to $4487.90 and the DG spot price is $4427.00.
Gold is trading near the 100-day moving average, a key technical resistance level. A sustained break through it may spur a further advance, though testing the level and failing may support lower prices.
Prospects of a deal to reopen the Strait of Hormuz also affected gold prices, which have come under pressure in recent months when the conflict worsens and rallied on signs of détente.
The inflation reports this week will be the latest signals on the Fed’s possible next moves. The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026.
Over 61% of investors tracked by the CME FedWatch Tool are betting on rates remaining unchanged at the Fed’s next policy meeting in September, while 38% see an increase by 25 basis points. A week ago, 58% were betting on a rate hike. The Fed has kept interest rates unchanged this year after three previous rate cuts.
Front-month silver futures fell 0.5% Tuesday to settle at $64.94 an ounce on Comex, though the September contract is up 2.3% so far this week. The most-active contract touched a record above $115 in January. Silver slid 3.6% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently up $1.290 (+1.99%) an ounce to $66.225 and the DG spot price is $66.21.
Spot palladium dropped 1.3% Tuesday to $1,369.00 an ounce and is down 1.2% in the first two days of the week. Palladium added 5.8% last month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is up $18.60 an ounce to $1392.00.
Spot platinum declined 0.4% Tuesday to $1,743.30 an ounce and is down 0.6% so far this week. Platinum gained 6.6% last month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently up $38.70 an ounce to $1786.60.
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