The headline inflation rate climbed 4.2% over the past 12 months, marking a notable increase from the 3.8% recorded in April. Despite higher energy costs permeating the broader economy, the data provided a temporary floor for gold prices, which had struggled after sliding below their 200-day moving average last week.

Core CPI, which excludes volatile food and energy sectors, rose by a modest 0.2% last month—slightly cooler than the 0.3% anticipated by analysts. While this annual core inflation rate of 2.9% remains well above the Federal Reserve's 2% target, the absence of a surprise spike allowed for a minor recovery in precious metals. Markets continue to price in potential rate hikes by year-end, leaving gold in a precarious position despite this week's stabilization.