Gold Slides Lower as US Inflation Clouds Fed Easing Outlook

Gold fell as the latest US economic data showed inflation accelerated on rising energy and food prices, reducing odds of monetary easing by the Federal Reserve this year.

Bullion for immediate delivery fell as much as 2.1% after the Bureau of Labor Statistics said the consumer price index rose the most since 2023. Renewed concerns over inflation sent bond yields higher, with traders increasing bets that the Fed will hike interest rates by December. Higher rates are generally negative for gold as it pays no interest.