Gold climbed 0.7% to $4,732 per ounce on Tuesday after the hotter-than-expected April CPI print reignited inflation fears and safe-haven demand. The metal had retreated 1% on Monday as elevated oil prices stoked rate-hike concerns, but Tuesday's session reversed that move as real yields dipped and the DXY dollar index fell below 98 — back to pre-war levels.
CPI Catalyst
The April CPI at 3.7% year-over-year was above expectations, but the market reaction in gold was counterintuitive: rather than selling on higher rates, traders bought gold as a hedge against entrenched inflation. The logic is that if the Fed cannot cut rates but inflation stays elevated, negative real rates persist — historically gold's best environment.
Central Bank Buying Continues
The People's Bank of China added 12 tonnes of gold to its reserves in April, the 18th consecutive month of accumulation and the longest buying streak since 2019. Total central bank gold purchases in Q1 2026 reached 290 tonnes, on pace to match 2025's record 1,037-tonne full-year total. Emerging-market central banks are diversifying reserves away from US Treasuries amid dollar-weaponization concerns.
ETF Flows Turn Positive
The SPDR Gold Trust (GLD) attracted $280 million in inflows Monday, the largest single-day haul in three weeks. Total