Spot gold falls 1.9% to $4,316 as market focuses on US CPI report

At the end of the US trading session, spot gold fell 1.9% to $4,316 per ounce, while spot silver dropped 5.5% to $63.56 per ounce. Financial website Fxstreet noted that WTI crude oil prices broke above the $100 per barrel mark for the first time since mid-May, and the rising US Treasury yields are putting pressure on dollar-denominated gold prices. Analyst Michael Boutros stated that the recently released US PPI data has intensified market expectations for further monetary tightening. Currently, federal funds futures indicate about a 72% probability of a rate hike by the Federal Reserve next week. The market's focus is now on the upcoming US CPI report; if the CPI data exceeds expectations, it could reinforce these forecasts, pushing up US Treasury yields and the US dollar exchange rate, adding downward pressure on gold. Conversely, if the inflation data softens, it could challenge the recent pricing mechanism and help stabilize gold prices ahead of the Federal Reserve meeting.