Gold futures rallied as crude pullbacks eased inflation fears.

August Gold futures experienced a strong gap higher, logging a second consecutive day of gains and trading near the opening price of 4,234.90. The recent pullback in WTI Crude Oil futures, which saw declines of 2.5% on Thursday and over 3% today, has started to ease some near-term inflation pressures ahead of the upcoming FOMC meeting. Because energy accounted for more than 60% of the CPI increase in May, a sustained decline could reduce the urgency for the Federal Reserve to signal additional tightening. The upcoming Summary of Economic Projections will likely be the next critical directional signal for the metals market. If Fed Chair Kevin Warsh indicates that rate hikes cannot fully address supply-driven inflation, it could support the market. Conversely, a hawkish shift projecting rate hikes into late 2026 could signal the Fed's willingness to combat supply shocks with imperfect tools.