US July CPI Meets Forecast as Cathie Wood Flags Gold Pullback Risk

US consumer prices rose 3.4% from a year earlier in July, matching market expectations and pointing to a relatively moderate inflation backdrop despite price growth remaining above the Federal Reserve’s long-term target. The reading eased concerns that the Fed would need to raise interest rates further, supporting gold, which typically benefits when expectations for borrowing costs and yields decline.

Gold climbed back above $4,400 an ounce after the CPI release and reached as high as $4,440. Cathie Wood, founder of ARK Invest, nevertheless warned that gold’s return relative to short-term US Treasuries has reached a historical extreme. If the economy shifts from inflation toward deflation, the non-yielding metal could face mean reversion and a price correction as interest-bearing government debt becomes comparatively more attractive.