Gold extended its gains after U.S. inflation figures came in line with market expectations, strengthening the view that the Federal Reserve is likely to cut interest rates at an upcoming meeting. The data showed headline inflation remained consistent with forecasts, while some underlying measures rose to their highest level since the start of the year.
Despite that rise in core inflation, softer prices for goods helped calm concerns about tariff-driven inflationary pressure. Because gold does not yield interest, it often benefits when real yields fall and monetary policy eases; the metal has risen roughly 28% year-to-date as investors price in a more accommodative policy outlook.
Traders and traders remain alert to potential changes in import treatment after confusion surfaced last week when U.S. Customs and Border Protection indicated gold bar imports could be subject to duties. The White House later said no new levy would be imposed, but details were limited, leaving some uncertainty for market participants. Continued safe-haven demand amid geopolitical tensions, coupled with steady central bank buying, has supported gold’s strong performance this year.