Gold Drops as Inflation Fears Reduce Rate Cut Bets

2026-05-13 14:44 By Joana Ferreira 1 min. read

Gold prices fell for a second straight session on Wednesday, slipping to $4,680 an ounce, as rising inflation dimmed expectations for interest rate cuts, while markets are also closely watching the upcoming Trump-Xi meeting.

US producer prices surged more than expected in April, marking their biggest gain since early 2022, driven by higher trade and energy costs amid the Iran war.

This followed Tuesday’s report showing consumer inflation accelerated to 3.8% last month, the highest since May 2023, leading investors to price out a US rate cut this year, according to CME Group’s FedWatch.

While gold is often seen as an inflation hedge, higher interest rates typically weigh on the non-yielding metal.

Additionally, India raised import tariffs on gold and silver to 15% from 6%, further dampening demand.

Meanwhile, US President Donald Trump’s visit to China will be monitored for any progress on the fragile trade truce and the Iran conflict.



News Stream
Gold Drops as Inflation Fears Reduce Rate Cut Bets
Gold prices fell for a second straight session on Wednesday, slipping to $4,680 an ounce, as rising inflation dimmed expectations for interest rate cuts, while markets are also closely watching the upcoming Trump-Xi meeting. US producer prices surged more than expected in April, marking their biggest gain since early 2022, driven by higher trade and energy costs amid the Iran war. This followed Tuesday’s report showing consumer inflation accelerated to 3.8% last month, the highest since May 2023, leading investors to price out a US rate cut this year, according to CME Group’s FedWatch. While gold is often seen as an inflation hedge, higher interest rates typically weigh on the non-yielding metal. Additionally, India raised import tariffs on gold and silver to 15% from 6%, further dampening demand. Meanwhile, US President Donald Trump’s visit to China will be monitored for any progress on the fragile trade truce and the Iran conflict.
2026-05-13
Gold Pressured by Strong US Inflation Data
Gold fell toward $4,700 an ounce on Wednesday, facing downward pressure after stronger-than-expected US inflation figures reduced expectations for Federal Reserve rate cuts. US consumer inflation accelerated to 3.8% in April, above market forecasts of 3.7% and the highest reading since May 2023, as escalating energy costs tied to the Middle East conflict pushed prices higher. In other news, India has increased import tariffs on gold and silver in a bid to curb bullion purchases and support its currency. Meanwhile, oil prices rallied over the past three sessions as ongoing diplomatic efforts to resolve the US-Iran war continued to stall, keeping concerns over inflation and energy markets firmly in focus. In other news, India has increased import tariffs on gold and silver in a bid to curb bullion purchases and support its currency.
2026-05-12
Gold is down by 2%
Gold decreased 2% to 4640.97 USD/t.oz
2026-05-12