Gold Bounces After US Inflation Surprise as Weekly Losses Persist
Softer US inflation data reduced near‑term rate‑hike odds, lifting bullion despite a larger weekly decline driven by a stronger dollar and higher Treasury yields.
Overview
- Global spot gold rose about 1.6% to $4,089.80 an ounce on June 27 as investors reacted to cooler‑than‑expected US inflation readings.
- India’s domestic rates also rebounded, with Good Returns reporting 24‑carat at Rs 14,395 per gram on June 27 after a brief dip the day before.
- Over the week gold fell roughly 4.63% as a firmer US dollar and elevated Treasury yields reduced demand for non‑yielding assets like bullion.
- Price swings were amplified by regional energy and shipping disruptions in the Strait of Hormuz and by New Delhi’s increase of basic customs duty on gold and silver to 10%, which raised import costs for Indian buyers.
- Futures and other metals reflected the volatility: MCX August gold futures gained, silver also rose, and IBJA and MCX quotes show mixed intraday moves that increase short‑term uncertainty for consumers and traders.