6.12.25 - Gold Gains on Middle East Tensions, Trump Tariffs

6.12.25 - Gold Gains on Middle East Tensions, Trump Tariffs6.12.25 - Gold Gains on Middle East Tensions, Trump Tariffs

Gold last traded at $3,386 an ounce. Silver at $36.28 an ounce.

Gold Gains as Traders Weigh Middle East Tensions, Trump Tariffs -Yahoo! Finance

(Bloomberg) -- Gold rose after another soft inflation report bolstered bets that the Federal Reserve may need to cut interest rates later this year.

US producer price inflation remained muted in May across the board, another sign that tariffs have yet to result in higher prices for consumers and businesses. Meanwhile, a jobs report showed recurring applications for US unemployment benefits rose to the highest since the end of 2021, adding to evidence that it is taking unemployed Americans longer to find a new job.

Treasury yields and the dollar pushed lower after the prints, lifting bullion by as much as 1.1% before paring some of the gains. Traders boosted their bets on rate cuts by the US central bank later this year. Gold typically benefits in a lower-rate environment.

Gold earlier was supported by haven demand following a CBS report that Israel was ready to launch an operation aimed at Iran, prompting the US to move some embassy staff out of Iraq and allowing military families to leave the region.