09:14 AM EDT, 06/11/2025 (MT Newswires) -- Gold futures rose early on Wednesday as the dollar and yields fell after a report showed U.S. inflation eased last month.

Gold for August delivery was last seen up US$16.40 to US$3,359.80 per ounce.

The U.S. Bureau of Labor Statistics reported the May Consumer Price Index rose by 0.1% in May from April, down from a 0.2% pace a month earlier and under the consensus estimate for a 0.2% rise, according to Marketwatch. Core CPI, excluding volatile food and energy costs, rose 0.1% monthly, down from 0.2% in April, while the consensus estimate predicted a 0.3% rise.

Gold's rise comes despite cooling international trade tensions as the United States and China agreed to a framework deal following two days of talks in London that will see the two countries ease export controls on strategic items including Chinese rare earths and U.S. semiconductors.

"Gold trades higher despite the US and China agreeing to ease trade tensions, with focus on today's US inflation print, investor appetite for US 10-year notes being auctioned today, continued central bank demand, and ongoing demand for investment metals," Saxo Bank noted.

The dollar moved lower following the inflation report. The ICE dollar index was last seen down 0.37 points to 98.73. Treasury yields were sharply lower, with the U.S. two-year note last seen paying 3.96%, down 7.3 basis points, while the yield on the 10-year note dropped 4.4 points to 4.436%.