Gold Slips as US Inflation Resurgence Raises Odds of Fed Hike

Gold fell as the latest US data showed a resurgence in inflation, reinforcing bets that the Federal Reserve will keep interest rates higher for an extended period of time.

Bullion dropped as much as 1% Wednesday after data showed US wholesale inflation accelerated in April to the fastest pace since 2022 as the Middle East conflict fed into higher freight transportation prices. Treasury 10-year yields rose toward the highest since July, while traders raised their bets on a hawkish Fed. That’s negative for gold as it pays no interest.