Gold

Gold prices experienced significant volatility today, driven by conflicting inflation reports. The precious metal's value fluctuated as market participants analyzed today's Producer Price Index (PPI) data, and compared the data to yesterday’s CPI report. 

The Bureau of Labor Statistics' latest Consumer Price Index (CPI) report, released today, shows a significant decline in inflationary pressures for June. This marks the first decrease in prices since early 2020. 

Federal Reserve Chairman Jerome Powell's recent testimony provided little insight into the timing of potential interest rate cuts, leading to a modest gain in gold futures. Powell's remarks, spanning two days of testimony, emphasized the Fed's data-dependent approach and the need for more evidence of sustained inflation reduction before initiating rate cuts.

"After a lack of progress toward our 2% inflation objective in the early part of this year, the most recent monthly readings have shown modest further progress,"   J. Powell’s testimony at the Senate Banking Committee

Gold futures experienced a sharp decline on Monday, shedding $34 to settle at $2,363.50 for the most active August contract. This drop came despite recent economic indicators suggesting a cooling inflation rate and a contracting U.S. economy—factors that typically support gold prices.