Gold Weakens After US Inflation Rises in June
Gold prices struggled to maintain their gains after key US data showed inflation rose in June as expected, potentially signaling that companies are starting to pass on tariff costs to consumers.
Gold futures fell 0.1% to $3,357.50 per troy ounce after rising 0.5% earlier in the trading session. The CPI report revealed consumer prices rose 2.7% year-on-year, faster than the 2.4% increase in May and in line with economists' expectations.
This data is typically closely watched by the Federal Reserve, which has been cautious in its approach to interest rate cuts amid concerns that President Trump's tariffs could fuel inflation. Gold tends to perform well in a low-interest-rate environment, which makes it attractive compared to yield-bearing assets like bonds.
Source: Bloomberg