Gold futures briefly surpassed $4,500 per ounce on Wednesday after U.S. inflation data aligned with market forecasts, extending a sharp recovery from July lows.

December gold reached an intraday high of $4,500.90 before easing back toward $4,483, leaving the contract up approximately 1% for the session. The move brought futures to their highest level in roughly two months and extended August's gain to more than 8%. Gold has now recovered nearly 13% from its July 20 intraday low near $3,986.50, reversing much of the weakness that followed its earlier 2026 record run. (Investing.com)

July CPI Rises 0.1% as Core Inflation Cools

The U.S. Consumer Price Index increased 0.1% in July after declining 0.4% in June. Annual inflation slowed to 3.4% from 3.5%, matching economists' expectations. (BLS)

Core CPI, which excludes food and energy, rose 0.2% during the month and 2.5% over the previous 12 months. Shelter prices gained 0.1% and accounted for roughly two-thirds of the monthly headline increase, while energy prices fell 1.5%.

The dollar weakened following the release, and Treasury yields moved lower, helping precious metals extend their advance as traders reassessed the likely path of U.S. interest rates. Gold, which pays no yield, tends to benefit when rate-cut expectations rise, as lower rates reduce the opportunity cost of holding the metal relative to interest-bearing assets.

Gold Tests Major $4,500 Resistance

The CPI reaction pushed gold directly into the $4,500 area that traders had identified as the next major technical hurdle after the metal reclaimed $4,200. Futures have now advanced for four consecutive sessions, with investment demand also strengthening alongside the price recovery.

Wednesday's first push above resistance reached $4,500.90 before sellers pushed the contract back below that level. A sustained daily close above $4,500 would place the market beyond the resistance zone that capped the latest rebound. Failure to hold the area would leave the first significant pullback zone around recent breakout levels below $4,400.

The rally is also reaching crypto-linked trading infrastructure. Coinbase opened regulated gold and silver futures to 24/7 trading in June, giving eligible traders access to precious-metals exposure through an around-the-clock market structure similar to crypto. (Crypto Adventure)

Physical Demand and Tax Policy Add to Gold Focus

Institutional and reserve demand remains elevated alongside the futures rally. Tether's physical gold holdings recently approached 150 tonnes after the stablecoin issuer accumulated 27.1 tonnes during the first half of 2026. The buying adds another large private source of physical demand to a market already supported by central banks, ETFs, and investors seeking exposure to scarce assets during periods of monetary and geopolitical uncertainty. Central banks have been consistent net buyers of gold in recent years, according to World Gold Council data, a structural demand layer that has underpinned prices even as Western investor positioning fluctuated. (Crypto Adventure)

Gold's advance also comes as Donald Trump considers capital-gains tax cuts ahead of the 2026 midterms, including a potential system that would adjust asset cost bases for inflation. Such a structure could reduce taxable real gains on appreciating assets if ultimately applied broadly, although no legislation or formal proposal has been introduced. (Crypto Adventure)

December gold remained near $4,483 after recording Wednesday's $4,500.90 intraday high.