01:47 PM EDT, 07/15/2026 (MT Newswires) -- (Updates prices in the second and final paragraphs.)

Gold edged lower midafternoon on Wednesday even as the dollar and treasury yields fell after the US reported an unexpected drop in wholesale price inflation last month.

Gold for August delivery was last seen down 0.5% to $4,049.80 per ounce.

The US Bureau of Labor Statistics reported the Producer Price Index fell by 0.3% monthly in June, down from a rise of 0.6% in May and under expectations for a flat reading, according to Marketwatch.

Core PPI, excluding volatile food, energy and trade services rose 0.1% last month, down from a rise of 0.8% in May and under expectations for a rise of 0.3%.

The drop follows the bureau's Tuesday report showing consumer prices also eased last month. The slowing growth in consumer and wholesale prices is checking worries the Federal Reserve will need to raise interest rates to manage rising costs. However, higher oil prices as Iran and the U.S. renewed fighting this week is reviving rate worries.

"Softer-than-expected US CPI data boosted expectations for a less aggressive Federal Reserve. However, the move quickly faded, with prices trading back down to around USD 4,030, as renewed gains in oil prices and fresh US strikes against Iran revived inflation concerns," Saxo Bank wrote.

The dollar moved down following the inflation data, with the ICE dollar index last seen down 0.39 points to 100.53. Treasury yields were also lower, with the US two-year note last seen paying 4.137%, down 7.3 basis points, while the yield on the 10-year note was down 4.3 points to 4.549%.