Mitsubishi UFJ: Whether Oil Prices Lift Inflation Is Key to Gold’s Near-Term Move

Gold fell even though U.S. inflation data came in below expectations. According to Jin10, Mitsubishi UFJ Financial Group analysts said the metal's short-term direction will depend on whether higher oil prices feed into U.S. inflation or remain a temporary geopolitical shock. U.S. producer prices fell last month as energy costs eased, but June inflation data have not yet reflected the impact of the latest escalation in tensions between the U.S. and Iran. Investors are now waiting for comments from Federal Reserve officials for more clues on the monetary policy outlook.