Gold Slides to $4,678 as Red-Hot CPI and Modi’s Purchase Plea Overwhelm Geopolitical Support

Gold suffered its steepest daily loss in weeks on Tuesday, tumbling to an LBMA fix of $4,678.10 an ounce—a 1.22% decline—after a three-pronged assault of hotter-than-expected US inflation, a resurgent dollar, and an unprecedented call from India’s prime minister for citizens to stop buying bullion. The metal had briefly touched a three-week high near $4,775 in Asian trading before the selling accelerated.

The data that upended the market came from the US consumer price index for April. Headline inflation accelerated to 3.8%, overshooting the 3.7% consensus estimate, while core prices rose 2.8%. The surprise effectively slammed the door on any near-term Federal Reserve rate cut: traders now price out easing entirely for the remainder of 2025. The dollar surged in response, sending EUR/USD to around 1.18 and briefly pushing the euro-denominated gold price below €4,000 an ounce. Higher bond yields compounded the pressure on the non-yielding asset.

Meanwhile, a fresh demand-side headwind emerged from New Delhi. Indian Prime Minister Narendra Modi publicly urged citizens to halt gold purchases, a move with outsized implications given the country imported nearly $72 billion worth of the metal in the past fiscal year. The appeal coincided with a further worsening of geopolitical tensions: US President Donald Trump dismissed Iran’s latest counter-proposal as “garbage,” and the ongoing closure of the Strait of Hormuz kept Brent crude at $107 a barrel. Rising energy prices feed into inflation expectations, strengthening the case for a more hawkish Fed—a dynamic that normally acts as a double-edged sword for gold, providing safe-haven bids while eroding the macro narrative.

Should investors sell immediately? Or is it worth buying Goldpreis LBMA?

In the mining sector, Barrick Gold offered a rare bright spot. The producer posted a record quarter, with first-quarter revenue jumping to $5.22 billion and net income doubling to $1.65 billion, as it realized an average of $4,823 per ounce. Its shares surged nearly 9% on the news. Yet even that stellar performance could not stem the broader bearish tide washing over the spot market.

From a technical perspective, the chart has turned increasingly strained. The 50-day moving average has slipped below the 100-day average, a classic bearish crossover that often signals further weakness. Gold now trades just under the short-term moving average at $4,697. A close below that level—after Tuesday’s intraday low of $4,648—could accelerate losses toward the $4,493–$4,540 zone. On the upside, resistance is layered between $4,728 and $4,800. All eyes now turn to Wednesday’s US producer price index, which could amplify or soften the CPI reaction, followed by the Trump-Xi summit on May 14–15, a potential catalyst for the dollar and inflation expectations.

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