Gold drops nearly 3% as CPI beats forecasts
In short
Gold fell nearly 3% after CPI came in stronger than expected. The inflation data pushed the dollar and bond yields higher.
Traders reacted quickly to the inflation reading.
What the reporting says
Gold fell nearly 3% after CPI came in above forecasts. The hotter inflation reading lifted the dollar and Treasury yields, which pressured bullion. The move extended gold’s drop as traders adjusted to the stronger price data and its effect on interest-rate expectations.
Why it matters
Gold fell nearly 3% after consumer price data beat forecasts, lifting the dollar and yields. Higher yields and a stronger dollar usually weigh on non-yielding gold, and that was the market response here.