15.07.202613:17:54UTC+00Gold Steadies as US PPI Cools

Gold prices reversed earlier losses to trade slightly higher at $4,070 per ounce on Wednesday, as weaker US inflation data helped counterbalance concerns over escalating tensions in the Middle East. US producer prices unexpectedly declined in June for the first time in nearly a year, pressured by lower energy costs, while core PPI rose a softer-than-expected 0.2%. This followed Tuesday’s weaker consumer inflation report, prompting investors to scale back expectations for additional Federal Reserve tightening. Even so, markets still assign roughly a 49% probability to a rate hike in September, as higher oil prices—driven by ongoing US strikes on Iran, the reimposition of a naval blockade on Iranian ports, and Tehran’s closure of the Strait of Hormuz—continue to pose upside risks to inflation. Fed Chair Kevin Warsh also reiterated that the central bank has “no tolerance” for persistently elevated inflation.