Key Takeaways
Gold prices edged higher after a key U.S. inflation report showed consumer prices surged in April, bolstering the precious metal’s appeal as an inflation hedge. Spot gold was up 0.2% at $4,724.45 an ounce as of 0026 GMT, according to Dow Jones.
Structurally stronger safe-haven demand, particularly in response to U.S. Fed independence concerns and aggressive U.S. tariff policy, could help gold find support around $6,000 an ounce by the year-end, Commonwealth Bank of Australia’s Vivek Dhar said in a note.
The move came after the Bureau of Labor Statistics reported the Consumer Price Index rose 3.8% over the 12 months in April, up from a 3.3% increase in March and the highest reading since May 2023. While the increase was in line with forecasts, the underlying "core" inflation, which excludes food and energy, rose 2.8% annually, slightly above the 2.7% expected by economists.
The persistent inflation, driven partly by a surge in energy prices, puts pressure on the Federal Reserve and complicates its path toward potential interest rate cuts. Gold is often seen as a haven during periods of economic uncertainty and currency devaluation. Over the last five years, gold has returned 155.46%, more than double the 78.48% return of the SPDR S&P 500 ETF Trust (SPY), according to data from Forbes Advisor. While JP Morgan's global research forecasts gold prices climbing toward $4,000 by mid-2026, the metal's all-time high was $5,597.23, reached on January 29, 2026.
This article is for informational purposes only and does not constitute investment advice.
