Gold falls as hot US inflation data trims rate cut bets
Spot gold fell to $4,703.49 as US inflation data showed the largest annual gain in three years. Investors expect the Fed to maintain higher rates for longer.
Gold fell 0.2% to $4,703.49 per ounce midday Wednesday after U.S. inflation data marked its largest annual gain in three years, lowering expectations for near-term interest rate cuts. The retreat follows a three-week high in the previous session as the dollar reached a one-week peak. Investors are shifting focus toward a high-stakes meeting between leaders of the United States and China later this week.
### Inflation Pressures Keep Federal Reserve on Hold U.S. consumer inflation accelerated in April, driven by higher oil prices stemming from the conflict between Israel and Iran. This data suggests the Federal Reserve will maintain current interest rates for a longer period. U.S. gold futures for June delivery gained 0.5% to $4,711.80.
