Gold Rises Off an Eight-Month Low, Dollar Falls after US Consumer Prices Eased in June

Gold rose off an eight-month low early on Tuesday as the U.S. dollar and yields weakened after the consumer prices eased in the world's biggest economy in June, easing concerns rising prices would force higher interest rates. Gold for August delivery was last seen up $79.30, or almost 2%, to $4,085 per ounce, after falling to the lowest since Nov. 6 a day earlier. The US Bureau of Labor Statistics reported the June Consumer Price Index fell by 0.4% in June, down from a rise of 0.5% in May and against expectations for a fall of 0.2%, The drop was the largest monthly decrease since April 2020, the agency said. Falling energy prices were the largest contributor. Core CPI, excluding volatile food and energy, was unchanged in June, down from a monthly rise of 0.2% in May and under expectations for a rise of 0.2%. Lower inflation is easing worries the Federal Reserve will need to raise interest rates to calm rising prices, however oil surged again since the U.S. and Iran renewed fighting on the weekend. "Gold briefly fell below USD 4,000 on Monday as surging oil prices reignited inflation and rate hike concerns," Saxo Bank wrote. "However, it.