U.S. Inflation Data Misses Expectations; Oil Price Rise May Drive Inflation Transmission, Says Mitsubishi UFJ

MUFG1.28%
According to Mitsubishi UFJ Financial Group, U.S. inflation data came in below expectations on July 16, with the Producer Price Index declining last month. However, the latest escalation of U.S.-Iran tensions could push oil prices higher. Analysts noted that gold's near-term direction hinges on whether rising oil prices transmit into sustained inflation or represent only temporary geopolitical shocks. Market participants are awaiting commentary from Federal Reserve officials for signals on monetary policy.
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