Gold trims losses on softer-than-expected US inflation data
- By Reuters -
- Jun 10, 2026
Gold pared losses on Wednesday but remained near more than a two-month low after the release of cooler-than-expected U.S. inflation data, while traders shifted their focus to the risk of a wider regional war involving the U.S. and Iran.
Spot gold was down 2.6% at $4,151.86 per ounce by 9:02 a.m. EDT (1302 GMT), its lowest level since March 23. Bullion fell 3% earlier in the session.
U.S. gold futures for August delivery shed 2.6% to $4,174.70.
“Asset markets, including gold, (are) seeing a modest relief rally with core CPI a tenth (of a percentage point) below consensus,” said Tai Wong, an independent metals trader.
The U.S. Labor Department reported that the Consumer Price Index excluding food and energy items gained 0.2% on a monthly basis after rising 0.4% in April. Economists polled by Reuters had forecast the core CPI would increase 0.3% on a monthly basis.
Traders are currently pricing in about a 67% chance of a U.S. interest rate hike in December, according to CME Group’s FedWatch tool. FEDWATCH
The release on Thursday of the U.S. Producer Price Index will provide investors more data to gauge the Federal Reserve’s monetary policy stance.
“Markets are in desperate need of some good news after strong payrolls on Friday and President (Donald) Trump’s threat earlier this morning that Iran “will pay the price” for not negotiating a deal,” Wong added.
Trump said on Wednesday that Iran had taken too long to negotiate a deal and would now “have to pay the price.”
Iran launched missile and drone attacks on U.S. bases in Jordan, Kuwait and Bahrain in retaliation for American strikes on Iranian targets around the Strait of Hormuz.
Bullion has been under pressure since the start of the war in late February, as surging oil prices fuel fears of inflation and higher interest rates.
While gold is seen as a hedge against inflation, higher rates typically weigh on the non-yielding metal.
“Despite recent price consolidation, inflation, central bank buying and currency debasement concerns continue to support gold,” Paul Wong, a market strategist at Sprott Asset Management, said in a note.
Spot silver fell 1.1% to $64.63 per ounce, platinum dropped 2.7% to $1,680.83, and palladium rose 0.9% to $1,233.00.