Gold slips as U.S. inflation jump lifts Fed hike odds in 2026

Gold fell on May 13, 2026, after a sharp rise in U.S. consumer prices increased market expectations that the Federal Reserve could raise interest rates before year-end. Spot gold was down 0.3% at $4,699.82 an ounce as of 10:03 a.m. in London, after losing 0.4% on May 12. The U.S. consumer price index posted its biggest increase since 2023 in April, driven by higher gasoline prices following the Iran war. Interest-rate swaps now imply about a one-in-three chance of a Fed rate increase by the end of 2026, compared with near-zero odds on April 30. Higher rates typically weigh on gold because it does not pay interest. JPMorgan Private Bank’s Yuxuan Tang said central bank demand has helped keep bullion resilient. India raised import tariffs on gold and silver to about 15% from 6%, aiming to support its currency and foreign-exchange reserves. Silver was little changed at $86.50, while the Bloomberg Dollar Spot Index rose 0.1%.