Gold rebounds from two-week low ahead of US CPI

July 13, 2026 (MLN): Gold prices rebounded on Tuesday after falling to a two-week low earlier in the session, with investors turning cautious ahead of the release of key U.S. inflation data that could influence the Federal Reserve's next policy decision.

Currently, spot gold is up 0.47% to $4,024.60 an ounce as of [10:00 am] PST, according to data reported by CNBC.

The precious metal recovered some ground after suffering its sharpest daily decline in more than a month in the previous session, when it lost around 3%.

The earlier sell-off came as escalating tensions between the United States and Iran pushed oil prices to one-month highs, fuelling concerns that inflationary pressures could persist and prompt further interest rate increases.

Although gold is traditionally considered a hedge against inflation, the prospect of higher interest rates tends to reduce its appeal because it does not offer any yield, making interest-bearing assets relatively more attractive.

Market participants remained on the sidelines ahead of several major economic events, including the release of the U.S. Consumer Price Index (CPI) for June, which is expected to provide fresh insight into inflation trends and the Federal Reserve's policy outlook.

Investors are also monitoring U.S. Producer Price Index (PPI) data due later this week, along with Federal Reserve Chair Kevin Warsh's first semi-annual testimony before Congress.

Adding to expectations of tighter monetary policy, Federal Reserve Governor Christopher Waller said on Monday that policymakers may need to raise interest rates in the near term if upcoming economic data show inflation remains well above the central bank's 2% target.

Showing the shift in sentiment, traders have significantly increased their expectations of a September rate hike. According to CME Group's FedWatch Tool, the probability of a rate increase has climbed to about 76%, compared with 57% a week earlier.

Meanwhile, spot silver slipped 0.1% to $57.60 per ounce after touching a two-week low earlier in the trading session.

Copyright Mettis Link News