Gold and Silver Surge as Softer CPI Data Eases Fed Rate Pressure

Gold climbed 2.22% to trade near $4,089.10 an ounce, successfully reclaiming the $4,000 threshold, while silver rose 2.78% to reach $59.12. The market shift followed a June CPI report showing headline inflation slowing to 3.5% from 4.2% year-over-year, marking the largest monthly decline since April 2020. Core CPI remained unchanged on a monthly basis, easing to 2.6% annually.

This cooling inflation data undercut the recent market anxiety surrounding Fed policy, allowing the U.S. dollar to soften and 10-year Treasury yields to retreat from their early highs. While the ongoing volatility in the Strait of Hormuz continues to exert upward pressure on energy costs—with Brent crude at $86.73 and Nymex WTI at $80.55—the softer inflation print has effectively offset the oil-driven inflationary channel for precious metals. Traders are now shifting their focus toward congressional testimony from Fed Chair Kevin Warsh and monitoring for further shipping disruptions in the Middle East.