Gold Prices Steady Despite U.S. Inflation Rise

Gold prices are holding solid gains but not reacting significantly to the U.S. Consumer Price Index (CPI) data, which showed a 0.2% rise in July and a 3.2% increase for the year. While the data suggests slightly cooler inflation than expected, it remains elevated. Some analysts believe that the lack of reaction in the gold market is due to the data not providing decisive information on U.S. interest rates. However, others note that core inflation remains stubbornly high, indicating that the Federal Reserve may not be able to ease interest rates anytime soon. The report also highlighted that shelter costs and rising motor vehicle insurance were contributing factors to inflation. Overall, the data is expected to keep the Federal Reserve on the sidelines for the rest of the year.