The price of spot gold has fallen by about 2% today with an ounce now trading below $3,200. The precious metal, seen as a hedge against inflation and economic uncertainty, is now down about 1% during the past month after rising as much as 6.2% and surpassing $3,400 per ounce.
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Cool CPI Report Contributes to Gold’s Fall
Yesterday, the April consumer price index (CPI) report showed inflation of 2.3%, the lowest rate since February 2021 and below the expectation for 2.4%. While that was good news for consumers’ pockets, it wasn’t for gold. Gold also typically carries an inverse relationship with economic uncertainty, which declined in recent days given tariff reductions between the U.S. and China. The U.S. also reached a trade deal with the UK last week.
Gold has still remained strong on a year-to-date basis. The big question is if these gains will hold, and for how long.
