Gold futures pulled back from high as CPI cooled

Gold futures rallied to test a high of $4,112.50 before pulling back to settle higher on the session, maintaining key support near the 4,000 level. Lower-than-expected June CPI data showed headline inflation falling to 3.5% year-over-year, driven by a 5.7% drop in energy prices and boosting expectations for the Fed to hold interest rates steady in July. Meanwhile, Fed Chair Kevin Warsh delivered his first Congressional testimony, emphasizing inflation control and Fed independence while highlighting AI-driven data center expansion as a key economic strength.