Gold futures briefly crossed $4,500 per ounce on Wednesday after U.S. inflation matched market expectations, extending a sharp recovery from July lows.
Gold has now recovered almost 13% from its July 20 intraday low near $3,986.50, reversing much of the weakness that followed its earlier 2026 record run.
July CPI Rises 0.1% As Core Inflation Cools
Core CPI, which excludes food and energy, increased 0.2% during the month and 2.5% over the previous 12 months. Shelter prices rose 0.1% and accounted for roughly two-thirds of the monthly headline increase, while energy prices declined 1.5%.
The dollar weakened after the release while Treasury yields moved lower, helping precious metals extend their advance as traders reassessed the path for U.S. interest rates.
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 advanced for four consecutive sessions, while investment demand has also strengthened alongside the price recovery. Wednesday’s first attempt above resistance reached $4,500.90 before sellers pushed the contract back below the 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 the recent breakout levels below $4,400.
Physical Demand And Tax Policy Add To Gold Focus
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.
