– Gold and other precious metals pared big losses in choppy trading conditions after data showed a fast rise in overall US consumer prices, but a more subdued gain in core inflation.
Most Read from Bloomberg Spot bullion traded down about 1.8%, trimming an earlier loss of as much as 3.1% in the run-up to report, which showed headline inflation accelerating the most in more than three years, fueling ongoing worries that the Federal Reserve will need to start raising interest rates
Still, core consumer prices — which are closely watched by the Fed — advanced by 0.2%, less than in the previous month and below a 0.3% survey estimate, providing partial relief to worries that rate hikes may be coming imminently. Overall inflation rose at an annual rate of 4.2%, the most since early 2023, driven by a surge in energy prices. Many economists expect further price gains in the months ahead.
That could keep a possible interest-rate increase this year in the conversation among Fed officials. See: US Inflation Accelerates, Though Core Gauge Comes in Softer Gold was under pressure in the lead-up to the report. Concerns about the viability of efforts to end the war in the Middle East rose to the fore after the US and Iran exchanged strikes following the downing of an American military helicopter.