Gold & Bonds Surge as Wall Street Shrugs Off Trump Noise Ahead of CPI Data Drop

Markets pivot to safe havens—because nothing says 'confidence' like betting on shiny rocks and government IOUs.

Gold spikes as inflation jitters return. Bonds rally while equities yawn—traders clearly think the Fed's 'transitory' narrative belongs in a museum.

Wall Street's Trump fatigue reaches terminal velocity. The Street's new mantra: 'Don't hate the player, hate the political risk premium.'

All eyes on CPI print—the only number that matters when central banks are this trigger-happy. Spoiler: Your grocery bill still hurts.

Bonus jab: If bonds and gold both rally, does that mean we're hedging against inflation... or just the competence of policymakers?

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.

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