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Gold jumps as June CPI eases pressure for further Fed tightening

XAU/USD rose about 1.5% after June US CPI came in below estimates, with the US Dollar Index down 0.35% and the 10-year Treasury yield falling nearly 4.5 bps.

Reported · Written up by our desk · Precious Metals

Gold prices rose on Tuesday, gaining about 1.5% as US consumer inflation data for June came in below market expectations, reducing pressure for additional Federal Reserve tightening ahead of 2026, according to FXStreet.

In the data, headline CPI eased from 4.2% to 3.5% year over year, compared with estimates for a slowdown to 3.8%. Underlying inflation also cooled from 2.9% to 2.6%, below forecasts of 2.8%, which helped investors dial back hawkish rate expectations.

The move also reflected currency and rates dynamics, with the US Dollar Index (DXY) down 0.35% to 100.92. Gold was further supported by lower yields, as the US 10-year T-note yield fell nearly 4.5 bps to 4.581%.

FXStreet also noted that Fed messaging remained cautious, with Chicago Fed President Austan Goolsbee calling June’s CPI “surprisingly benign” while warning against overreacting to a single month. Still, gold’s near term outlook could be complicated by higher oil prices linked to renewed Middle East hostilities, with WTI up 1% on the day and 10.27% in July.

Latest closeGold $4,011.00 ▼2.3%|WTI crude $78.04 ▲9.3%|Dollar index 101.28 ▲0.3%

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