Milder CPI and PPI Lift Gold While Easing Rate Hike Odds, Yet Fed Seeks More Core Evidence

Gold prices climbed after benign CPI and PPI prints, breaking out of their recent range and holding above $4,350, exactly $100 below the post-CPI peak. Experts argue the Fed will stay cautious and avoid declaring victory over inflation too soon. Scott Anderson of BMO said the CPI report showed consumer prices easing for a second straight month, easing fears of an energy-driven spiral, yet more proof on core services moderation is required before removing the rate-hike threat. Diane Swonk of KPMG noted headline inflation moved sideways without a decisive drop, with consumers still feeling prior price surges. Daniel Hynes of ANZ observed that the data lowered the odds of a September hike to 40 percent, while gold-backed ETFs saw $3 billion in July inflows. James Knightley of ING listed four reasons inflation should keep cooling into 2027, citing gasoline, housing, and labor-market balance.