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Updated · Bloomberg · May 12Gold Holds Near $4,718 as US Inflation Jump Cuts 2026 Fed Rate-Cut Odds
6 articles · Updated · Bloomberg · May 12
- $4,718 an ounce marked gold's level after bullion steadied, holding onto a 0.4% drop from Tuesday rather than rebounding.
- April US consumer prices rose by the most since 2023, pushing traders to scale back expectations for Federal Reserve rate cuts this year.
- Real wages fell for the first time in three years after inflation adjustment, underscoring how the price surge is tightening financial conditions.
- Higher-for-longer rate expectations tend to weigh on non-yielding gold, leaving bullion sensitive to upcoming US inflation and policy signals.
With conflicting economic signals, is the Federal Reserve's inflation fight pushing the U.S. toward an unavoidable recession? Why are real wages falling for the first time in three years while the stock market hits record highs? Is the massive energy demand from AI data centers creating a new, permanent type of inflation for the economy?