Gold surges on bargain-hunting and softer-than-expected US inflation report

Gold prices rise after a sharp loss, supported by softer US inflation and the US-China tariff deal.

NEW YORK, May 14: Gold prices rebounded on Tuesday, driven by bargain-hunting after a sharp loss the previous day, with softer-than-expected inflation data from the U.S. providing additional support.

As of 1357 ET (17:57 GMT), spot gold rose 0.4% to $3,246.95 per ounce, recovering from a low of $3,207.30 on Monday. U.S. gold futures also settled 0.6% higher at $3,247.8.

Bart Melek, head of commodity strategies at TD Securities, commented on the price movement: “We had a big correction in gold on Monday following the news of a deal between the U.S. and China. However, with tariffs on China still at 30%, this remains negative for the economy.”

The U.S. and China announced a 90-day pause on tariffs on Monday. As part of this agreement, the U.S. agreed to reduce tariffs on Chinese imports from 145% to 30%, while China pledged to lower duties on U.S. imports from 125% to 10%.

Gold prices had surged to multiple record highs in 2025, driven by concerns over economic slowdowns following U.S. President Donald Trump’s sweeping tariffs, strong central bank buying, geopolitical tensions, and increased investment in gold-backed exchange-traded funds.

In other news, the U.S. Consumer Price Index (CPI) increased by 0.2% last month, according to the Bureau of Labor Statistics. Economists had forecast a 0.3% rise.

Jim Wyckoff, senior analyst at Kitco Metals, pointed out that the inflation report “leans slightly favorable for the precious metals markets because it does not pose a problematic inflation scenario that would deter the Federal Reserve from cutting interest rates.”

Markets expect the Federal Reserve to resume its policy easing in September, which typically makes non-yielding assets like gold more attractive.

Other precious metals saw gains as well, with spot silver rising nearly 1% to $32.89 an ounce, platinum climbing 1.4% to $985.92, and palladium gaining 1% to $955.15.