The gold market rallied after the CPI numbers came out weaker than anticipated.
Gold managed to meet the target of 4050 and broke below it. Prices are still searching for support with the medium term support being at 3886.
The US dollar posted its best day in three weeks on rumours of a US military blockade of the Strait of Hormuz. The escalation of the conflict in the Middle East enabled Brent to post its best daily percentage growth since 2020.
Gold: Oil spike weighs on prices – OCBC
Gold is finding itself squeezed by two markets moving in the same direction. Oil is rebuilding inflation fears, while the Federal Reserve is becoming more willing to tighten policy again if price pressures refuse to ease.
Gold found support at $4,021 with recovering momentum while silver held $57.73 amid constrained supply growth ahead of USCPI and Kevin Warsh testimony. Central bank buying and expanding industrial demand for silver in solar, electronics, and EVs provided a solid foundation for both metals.
Pakistan Gold price today: Gold rises, according to FXStreet data
India Gold price today: Gold rises, according to FXStreet data
Malaysia Gold price today: Gold rises, according to FXStreet data
Gold bounces off two-week low as USD bulls turn cautious ahead of US CPI, Fed's Warsh
Gold tumbles below $4,000 on Trump's Iran port blockade move, US CPI data looms
Gold's safe-haven narrative is weakening as the Iran conflict lifts oil prices and rate expectations, putting 2026 lows back within reach.