Gold prices gained slightly on Wednesday as United States Consumer Price Index data revealed increases in prices and inflation.
Spot gold was up 0.14% to 3,354.47, as of 4:35 pm (AEST).
The U.S. Consumer Price Index increased by 0.2% in July, down from 0.3% in June.
Prices grew by 2.7% year-over-year last month, with the annualised inflation rate up by 0.4% since April. Core inflation rose by 3.1% in July, compared with 2.9% in June.
Energy prices fell by 1.6% over the previous year, however.
“While one data point does not make a trend, two consecutive months of higher 12-month inflation will make it difficult for the Fed to justify a rate cut at their September 17 meeting,” said Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli. “We do not expect a September rate cut unless the jobs market drops off drastically over the next 45 days.”
Meanwhile, U.S. President Donald Trump has said tariffs will not apply to gold bars. U.S. Customs and Border Protection had previously said gold bars would face the standard tariff rate on their country of origin, bringing gold prices to a record high close on Friday.
“Gold will not be Tariffed!,” Trump wrote on Truth Social yesterday.
Goods from Switzerland, which holds around 70% of the world’s gold bullion market, currently face a 39% tariff. Gold bars represent most Swiss bullion exports to the U.S.
