New York, May 13, 2026, 12:59 (EDT)
Gold slipped for a second straight session on Wednesday, with new U.S. inflation figures dampening hopes for rate cuts and keeping bullion under pressure. Spot prices dropped 0.6% to $4,686.99 an ounce as of 09:05 a.m. EDT, while U.S. gold futures edged up 0.2% to $4,694.70. Peter Grant, vice president and senior metals strategist at Zaner Metals, attributed gold’s weakness over the last two days to markets increasingly bracing for “higher rates for longer.” Investors continued to keep an eye on the Trump-Xi meeting and ongoing tensions in the Middle East. Reuters
This move is notable: gold doesn’t pay interest, so it typically loses ground when bond yields climb or traders see the Fed sticking with tighter policy. The Producer Price Index, which tracks wholesale inflation, posted a 1.4% jump for April—marking the sharpest monthly rise since March 2022. Nationwide senior economist Ben Ayers flagged the increase, saying it signals “further increases for consumer prices in May.” Reuters
No single data release drove the move. The Consumer Price Index—the primary measure of U.S. consumer inflation—jumped 0.6% in April and came in 3.8% higher than a year ago, marking the sharpest annual increase since May 2023 as energy, food, and services prices advanced. That dynamic has muddied gold’s traditional role as an inflation hedge: while rising inflation can boost demand for safe-haven assets, higher interest rates make holding gold more expensive.
Gold slipped up to 1% on Wednesday, Bloomberg said, following a jump in U.S. wholesale inflation and as markets leaned toward expecting a tougher Fed stance. The 10-year Treasury yield pushed near levels not seen since July, piling more pressure on bullion.
Even so, losses haven’t spiraled. Overnight-indexed swaps now reflect over a 40% probability of a Fed hike before year-end. Yuxuan Tang, who leads Asia rates and FX strategy at JPMorgan Private Bank, pointed out that gold’s “asymmetric” rates reaction is familiar territory—“Gold prices stayed resilient when rates spiked” in earlier cycles, he said. The Edge Singapore
Geopolitical tensions continue to support the market. President Donald Trump touched down in Beijing on Wednesday for meetings with Chinese President Xi Jinping—trade issues, U.S. business access in China, and the Iran war are all up for discussion. Nvidia’s Jensen Huang and Elon Musk are also among the executives involved in the visit.
India delivered another jolt for bullion markets, bumping import tariffs on gold and silver up to 15% from the previous 6% in a bid to slow buying and support its foreign exchange reserves. Surendra Mehta at the India Bullion and Jewellers Association remarked the hike “could affect demand,” with prices already elevated. Reuters
Indian gold futures shot up 7.2% to 164,497 rupees per 10 grams early, right after the tariff hike. Silver didn’t lag either, jumping 8% to 301,429 rupees per kg.
India stands as the world’s second-biggest gold buyer, almost entirely reliant on imports to satisfy its appetite. In the fiscal year ending March, the country shelled out a record $84 billion on gold and silver imports—well above the $35.5 billion spent ten years prior. Still, Reuters points out that even with local gold prices up 443% over the decade, annual demand hasn’t really moved much.
Precious metals painted a mixed picture. Silver hovered near $86.47 an ounce in Singapore, flat on the day but still up 17% in May. Platinum and palladium slipped, pointing to rates and policy risk—not just a broad metals pullback—as the likely drivers behind the latest move.
Gold bears could get squeezed if safe-haven flows swamp rate-driven selling, especially if the standoff around the Strait of Hormuz drags on or inflation jitters escalate. Bulls, on the other hand, face a more straightforward threat: as traders back away from Fed cut bets—or even start leaning toward rate hikes—bullion would have to weather the hit from rising yields before geopolitical drivers can help.
