Supply and Demand Factors The dip in gold prices follows a mixed report from the Labor Department, where underlying inflation’s annual rise was the smallest in nearly two years, suggesting a Fed rate pause. Market Sentiment The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.3% decline in holdings, standing at 882.00 tonnes on Wednesday, signaling waning demand for the precious metal. While the CPI data largely aligned with expectations, it suggested that the Federal Open Market Committee (FOMC) is likely to keep rates steady, providing a temporary support level for gold.