Gold Prices Recover as Weaker Dollar and Falling Bond Yields Offset US Inflation Concerns - Yahoo Finance UK

AI desk brief

Gold recovered after a sharp inflation-driven selloff as lower US Treasury yields and a softer dollar offset concerns that hotter US CPI could keep the Fed restrictive for longer. Spot gold was up 1.2% at $4,152.51/oz and futures rose 1.6% to $4,173.75/oz, after markets briefly priced more tightening; Vital Knowledge said expected Fed tightening over the rest of 2026 increased to about 30bp from 25bp after the data.

The initial move higher in yields and the dollar was tied to stronger inflation and energy costs linked to the Iran conflict, but both reversed as tech-led equity weakness pushed some flows into government bonds. Chicago Fed President Goolsbee called the inflation print discouraging and said policymakers still could not tell whether rates are restrictive enough to return inflation to 2%, keeping the policy path and real-yield backdrop in focus for bullion. Rick Kanda also highlighted central-bank buying, US rates, the dollar and safe-haven demand as key drivers into 2027.