Gold Swings as Traders Mull Fed Rate After Tame Inflation Report

Gold fluctuated as traders weighed the US Federal Reserve’s interest rate path after a modest rise in the cost of US goods tempered concerns about tariff-driven price pressures.

Underlying inflation accelerated in July by the most since the start of the year, though goods inflation was more subdued, according to Bureau of Labor Statistics data released Tuesday.

Swap traders still are betting the US central bank will lower borrowing costs at its September meeting, especially given a softening labor market. Gold, which pays no interest, typically benefits in a lower rate environment.

The precious metal earlier climbed as much as ...