Gold prices experienced a decline for the second day, trading around $4,695 an ounce, following a significant rise in US inflation, which increased the likelihood of a Federal Reserve interest rate hike. The US consumer price index recorded its largest jump since 2023, contributing to a decline in real wages for the first time in three years. Market expectations now indicate over a 40% chance of a rate increase by the end of the year, up from nearly zero last month. As US yields rose, investors sought higher compensation for holding bonds due to persistent inflation driven by elevated energy prices. Despite these pressures, gold has shown resilience, a trend noted by Yuxuan Tang, Asia head of rates and FX strategy at JPMorgan Private Bank, who highlighted strong demand from central banks as a key factor supporting gold prices. In a related move, India, the second-largest gold consumer, raised its import tariffs on gold and silver from 6% to 15% to stabilize its currency and bolster foreign-exchange reserves. Spot gold was reported at $4,695.18 per ounce, with silver remaining stable at $86.47, up 17% this May. Meanwhile, platinum and palladium prices fell.