12.08.2026 15:50
The U.S. Department of Labor released July inflation data. Accordingly, consumer prices rose 0.1% on a monthly basis in July, while annual inflation fell to 3.4%. Following the data, gold prices continued to rise.
The US July inflation data, eagerly awaited by global markets, has been announced. Contrary to expectations, annual inflation fell to 3.4 percent, and after the surprise data, gold prices tested above 6,800 TL.
The US July Consumer Price Index (CPI) data, which global markets have been watching, has been revealed. The announced figures indicated that inflationary pressure decreased, contrary to expectations of a rise in the market.
REMAINED BELOW EXPECTATIONS ON AN ANNUAL BASIS
The general expectation in the markets was that annual inflation would climb to 3.8 percent in July. Annual inflation, recorded at 3.5 percent in June, surprisingly declined to 3.4 percent with the latest data. On a monthly basis, while a 0.1 percent decrease in the Consumer Price Index (CPI) was expected, the data showed a limited monthly increase of 0.1 percent. However, the retreat on an annual basis clearly revealed that the overall pace of price increases is weakening.
MONTHLY DECLINE MOMENTUM AND FED EXPECTATIONS
Examining monthly changes; the 0.4 percent decline recorded in June was noted as the first monthly decrease seen since May 2020. Despite the limited monthly increase in July, the continued decline in the annual figure painted a picture that eases the pressure on the US Federal Reserve's (Fed) interest rate policy.
MARKETS MOVED
The weakening of the possibility of a Fed interest rate hike and the retreat of the US Dollar against global currencies benefited the safe-haven gold. Following the critical inflation data coming in below expectations, with the positive momentum in the markets, gram gold tested above the 6,800 TL level.