Gold Steadies as US PPI Cools
2026-07-15 13:17
By
Joana Ferreira
1 min. read
Gold prices recovered earlier losses to trade slightly higher at $4,070 per ounce on Wednesday, as weaker US inflation data offset concerns over escalating tensions in the Middle East.
US producer prices unexpectedly declined in June for the first time in nearly a year, weighed down by lower energy costs, while core PPI increased by a softer-than-expected 0.2%.
The data followed Tuesday's weaker consumer inflation report, leading investors to reduce expectations for additional Federal Reserve tightening.
However, markets still see roughly a 49% chance of a September rate hike as higher oil prices, driven by the ongoing US strikes on Iran, the reimposition of a naval blockade on Iranian ports, and the closure of the Strait of Hormuz by Tehran, continue to pose upside risks to inflation.
Fed Chair Kevin Warsh also reaffirmed that the central bank has "no tolerance" for persistently elevated inflation.