Gold prices fell on Wednesday after
climbing more than 2% in the previous session, as rising oil
prices fuelled inflation concerns and uncertainty over the U.S.
interest-rate outlook, weighing on non-yielding bullion.
Spot gold was down 0.5% at $4,035.67 per ounce, as of
0300 GMT. U.S. gold futures for August delivery eased
0.7% to $4,042.20.
Gold jumped more than 2% to as much as $4,100.49 per ounce
on Tuesday, rebounding from a two-week low, after data showed
U.S. consumer inflation slowed more than expected in June as
energy prices retreated.
Oil prices extended gains to a third consecutive session as
U.S. President Donald Trump reimposed a naval blockade of all
Iranian ports and threatened to hit power plants and bridges
next week unless Tehran resumes negotiations, in the latest U.S.
escalation of the conflict.
“I reckon that the market is now looking past the CPI data,
which is kind of a lagging indication… Trump continues to
maintain the blockade of ships that is flowing out of the Strait
of Hormuz, causing oil prices to rise and gold to come under
pressure,” said Kelvin Wong, a senior market analyst at OANDA.
Elevated crude oil prices can stoke concerns around
inflation and higher-for-longer interest rates, and while gold
is traditionally seen as an inflation hedge, it does lose its
appeal as a non-yielding asset in a high-interest-rate
environment.
Top Federal Reserve officialswelcomed cool inflation figures
for June, but said they would need more such readings to feel
confident that price pressures are truly easing.
The Producer Price Index, due later in the day, is expected
to offer further insight on inflation.
Traders now see about a 58% chance of a rate increase at the
Fed’s September meeting, versus 76% before the report, and are
still pricing an about 80% chance of a December hike, CME
FedWatch Tool’s data showed.
Elsewhere, spot silver lost 0.3% to $58.48 per ounce.
Platinum gained 0.2% to $1,635.56 and palladium
edged 0.2% higher to $1,307.11.
Published on July 15, 2026
