Gold Rebounds After U.S. June CPI Falls Below Forecast, Up 1.6% as Fed Rate Hike Concerns Ease

According to News1, on July 14, international gold futures prices rebounded as U.S. June consumer price inflation came in significantly lower than market expectations. August gold futures contracts on COMEX rose 1.6% to $4,069.70 per troy ounce after the U.S. Labor Department reported June CPI fell 0.4% month-over-month versus the forecasted 0.2% decline, easing concerns about potential Federal Reserve rate hikes.

Despite the rebound, gold remains approximately 24% below its all-time high of $5,318.40 per troy ounce reached earlier this year. Rising Middle East tensions and soaring crude oil prices have paradoxically weighed on gold, as higher energy costs risk reigniting inflation, potentially keeping the Fed's interest rates elevated longer. According to analyst Fawad Razakzada quoted by Reuters, geopolitical risks are now triggering inflation concerns rather than traditional safe-haven demand for gold.