XAU/USD trades at $4,062 after U.S. PPI data undershoots expectations, pressuring the dollar amid Fed inflation focus.
Gold prices held near $4,062 as the U.S. Producer Price Index (PPI) rose 5.5% year-over-year in June, below the expected 6.6% and down from May’s 6%. The monthly PPI fell 0.3%, further easing inflation concerns.
The dollar came under selling pressure following the data, reversing early gains. Fed Chair Kevin Warsh’s congressional testimony emphasized persistent inflation risks but suggested price pressures may not be permanent, adding to market uncertainty.
Geopolitical tensions in the Middle East remained elevated after U.S. military strikes on Iran, though oil prices stayed stable, limiting safe-haven demand for gold.