Gold Rises Globally Ahead of Key U.S. Inflation Data
Gold prices edged higher in early Tuesday trading as investors worldwide awaited critical U.S. inflation data, which is expected to offer further clarity on the future trajectory of interest rates set by the Federal Reserve.
In the spot market, gold rose 0.1% to $3,346.94 per ounce , while U.S. gold futures remained steady at $3,355.60 per ounce.
This movement comes amid renewed global trade tensions, following threats from the U.S. administration to impose 30% tariffs on imports from both Mexico and the European Union starting August 1. The lack of trade agreements after weeks of negotiations has reignited concerns over the outlook for global commerce.
Markets are now shifting focus toward U.S. consumer price index (CPI) figures for June, due later today. Expectations suggest a year-on-year inflation rise to 2.7%, up from 2.4% in May. Core inflation is also forecast to increase to 3% from the previous 2.8%.
These figures could play a pivotal role in shaping expectations for upcoming Federal Reserve policy moves. Current market sentiment points to a possible 50 basis point rate cut by the end of the year, with the first reduction potentially coming in September.
Gold tends to benefit from lower interest rates, which reduce the opportunity cost of holding non-yielding assets. The current anticipation of rate cuts is helping to support the metal, although gains remain capped due to the strong U.S. dollar and rising Treasury yields.
Further upward momentum for gold may require a pullback in the dollar or bond yields, unless escalations in geopolitical risks provide an additional boost to demand for safe-haven assets.
Other Precious Metals Trends
Silver continued its upward momentum, rising 0.3% to $38.24 per ounce—building on Monday's rally that saw prices reach their highest levels since September 2011. The metal is benefiting from concerns about supply constraints and increased industrial demand.
Platinum climbed 0.3% to $1,368.30 per ounce, while palladium added 0.1% to trade at $1,194.52 per ounce, reflecting sustained investor interest in both industrial and precious metals.
Gold’s modest rise reflects a delicate balance of drivers: anticipation of softer U.S. monetary policy, heightened trade risks, and shifting market sentiment. While stronger Treasury yields and a resilient dollar present headwinds, any signs of inflationary surprise or geopolitical deterioration could reinvigorate gold’s rally toward the $3,400 mark. Meanwhile, silver and other precious metals continue to attract interest amid evolving industrial dynamics and investor repositioning.
