US Dollar Near Two-Month Low as Markets Await Inflation Data 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
US Job Growth Seen Picking Up in July 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
Gold Prices Surge 7% as Dollar Falls, Fed Rate Hike Bets Ease 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
Gold prices recovered on Thursday after falling to their lowest levels since November 2025, supported by a weaker U.S. dollar following the release of the latest U.S. inflation data. While easing concerns over aggressive Federal Reserve rate hikes lifted bullion, gains remained limited as oil prices climbed amid renewed geopolitical tensions in the Strait of Hormuz.
Spot gold advanced 0.7% to close at $4,026.78 per ounce, while U.S. gold futures gained 0.8% to settle at $4,041.60 per ounce. The precious metal benefited as the U.S. dollar ended its six-session winning streak after the May Personal Consumption Expenditures (PCE) report met market expectations.
The latest Core PCE Price Index, the Federal Reserve's preferred inflation gauge, increased 0.3% month-over-monthand 3.4% year-over-year, matching analyst forecasts. Meanwhile, headline PCE rose 0.4% monthly and 4.1% annually, slightly below expectations on a monthly basis. Although inflation remains well above the Fed's 2% target, investors viewed the report as a sign that inflationary pressures may be stabilizing.
The data eased fears that the Federal Reserve, led by Chair Kevin Warsh, would aggressively tighten monetary policy after its recent hawkish outlook. According to the CME FedWatch Tool, traders slightly reduced expectations for additional interest rate hikes while increasing bets that the central bank could keep rates unchanged. Lower interest rate expectations typically support gold prices because the metal does not generate interest income and becomes more attractive when the dollar weakens.
Despite the positive momentum for gold, rising crude oil prices capped further gains. The increase followed reports of another attack on a commercial vessel in the Strait of Hormuz near Oman. The United Kingdom Maritime Trade Operations confirmed that an unidentified projectile damaged a cargo ship, while reports indicated U.S. officials attributed the attack to Iran's Islamic Revolutionary Guard Corps.
The incident raised fresh concerns about shipping security in one of the world's most important energy corridors, even after the recent interim peace agreement between the United States and Iran helped restore tanker traffic. Although shipping activity has improved, renewed geopolitical risks pushed oil prices higher, creating uncertainty over future inflation trends.
Analysts believe that easing oil prices in recent weeks have reduced immediate inflation concerns, but persistent core inflation and ongoing labor market constraints could still influence future Federal Reserve decisions. Investors will continue monitoring economic data, interest rate expectations, geopolitical developments, and movements in the U.S. dollar for further direction in both the gold and broader commodities markets.
