Gold, bonds rise ahead of CPI release as Wall Street grows resilient to Trump

Wall Street traders on Tuesday moved past Donald Trump’s latest trade decision and turned their attention to fresh U.S. inflation data, according to data from CNBC. U.S. stock futures were mixed in early morning trade.

Contracts tied to the Dow Jones Industrial Average added 77 points, or 0.17%. Nasdaq 100 futures slipped 0.02%, while S&P 500 futures fell 0.35%. The muted moves came ahead of the July consumer price index release, a key reading that could shape expectations for the Federal Reserve’s next interest rate decision.

Economists expect CPI to rise 0.2% month over month and 2.8% year over year. The core CPI, which strips out food and energy, is projected to climb 0.3% from June and 3.1% compared to July 2024.

Those numbers matter because the S&P 500 is trading near an all-time high, and the Fed’s next steps on rates could hinge on whether inflation shows signs of cooling.

Trump on Monday extended his 90-day pause on higher tariffs for Chinese imports. Investors did not react strongly, with the day’s focus locked firmly on inflation.

Gold recovers after steep drop as traders wait for U.S. data

Gold prices made slight gains on Tuesday after a sharp selloff the day before. Spot gold rose 0.2% to $3,349.13 an ounce by 09:04 GMT. U.S. gold futures for December delivery held steady at $3,398.90. On Monday, bullion fell 1.6% to its lowest in over a week, and futures slid more than 2%, after Trump confirmed there would be no tariffs on imported bullion.

The CPI report is set for release at 12:30 GMT, with producer price data following on Thursday. Economists in a Reuters poll expect July’s core CPI to rise 0.3%, taking the annual rate to 3% — further above the Fed’s 2% target. Other precious metals also gained. Spot silver climbed 0.6% to $37.81 an ounce, platinum rose 0.8% to $1,336.84, and palladium advanced 1.5% to $1,152.68.

Bond markets saw small moves ahead of the data. The 10-year Treasury yield was at 4.279% at 3:34 a.m. ET. The 2-year yield added about one basis point to 3.764%, while the 30-year yield ticked up less than one basis point to 4.848%. One basis point equals 0.01%. Prices and yields move in opposite directions.

Eastspring Investments said in a note that “market reaction to the CPI is probably skewed in favor of Fed rate cuts.”

The firm said a lower-than-expected CPI would likely boost bets for cuts in September and at the end of the year, as it would reduce what it described as the “ostensible need” for the Fed to remain cautious on inflation.

They also warned that July and August readings could be too early to show the real effects of tariffs.

Asian markets close mixed while investors track U.S. inflation

Asian equity markets posted mixed results Tuesday as traders in the region followed developments in the U.S. Hong Kong’s Hang Seng Index gained 0.25% to close at 24,969.68. China’s CSI 300 rose 0.52% to finish at 4,143.83. South Korea’s Kospi fell 0.53% to 3,189.91, and the Kosdaq dropped 0.57% to 807.19.

Australia’s S&P/ASX 200 advanced 0.41% to end the session at 8,888.80. In Japan, the Nikkei 225 added 2.15% to 42,718.17, and the broader Topix index rose 1.39% to 3,066.37. Over in India, the Nifty 50 was flat, while the BSE Sensex fell 0.12% as of 1:52 p.m. IST, which was 4:23 a.m. ET.

The extension of the U.S.-China trade truce was noted by traders, but like their U.S. counterparts, most in Asia were waiting for the CPI data to see if it could shift expectations for U.S. interest rates. That decision could influence currencies, commodities, and equity flows worldwide.

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.