NEW YORK / Content Syndication Services / – Gold prices rebounded Thursday from a six-month low as traders tracked U.S. inflation data, interest rate expectations and firm oil prices. Spot gold rose 0.5% to $4,095.64 an ounce by 0558 GMT. Earlier in the session, bullion touched $4,022.09, its lowest level since Nov. 21. U.S. gold futures for August delivery fell 0.4% to $4,116.20. The move kept gold near levels last seen in late 2025.
The rebound followed a sharp slide that had pushed gold toward the $4,000 mark, a closely watched level for bullion traders. The move left spot gold near multi-month lows even as the metal remained higher than a year earlier. Gold prices have faced pressure from rising U.S. rate expectations, which lift the relative appeal of interest-bearing assets. That backdrop kept volatility high across gold futures and spot bullion markets.
Investors focused on the May Producer Price Index after Wednesday’s Consumer Price Index showed U.S. consumer inflation rising at its fastest pace in three years. The U.S. Bureau of Labor Statistics reported that headline CPI rose 0.5% in May and 4.2% from a year earlier. Energy costs led the monthly increase as oil prices advanced during the Middle East conflict. The data placed inflation and interest rates at the center of gold trading.
Inflation focus drives bullion trading
The inflation data kept attention on the Federal Reserve’s policy path. Rate futures pricing showed traders assigned a greater than 70% chance of a U.S. rate increase by December. Higher rates can weigh on gold because the metal pays no interest. A stronger dollar can also make dollar-priced bullion costlier for buyers using other currencies. The dollar index failed to gain much after the consumer inflation report.
Treasury yields remained central to bullion trading, with investors watching how U.S. inflation readings affected real rates. Gold often draws demand during inflation and geopolitical stress. High yields can curb demand for assets that do not generate income. The latest moves showed how gold prices can react to inflation data, oil markets and rate expectations at the same time. Trading also reflected close attention to the six-month low in physical and financial markets.
Oil prices add market pressure
Oil prices climbed Thursday after Iran declared the Strait of Hormuz closed following U.S. strikes, adding pressure across energy markets. The Strait is a key route for crude shipments from the Gulf. Higher crude prices can feed into transport, fuel and production costs. Those links kept inflation at the center of the gold market’s trading session. Rising crude also strengthened market attention on energy components inside the latest U.S. inflation readings.
Other precious metals also moved higher during the session. Spot silver rose 0.4% to $63.95 an ounce. Platinum gained 0.4% to $1,671.09, while palladium climbed 2.9% to $1,248.45. The gains left the precious metals complex steadier after recent selling. Gold remained close to its weakest level in more than six months, keeping spot gold and gold futures under close watch across global commodity markets.