Cooling inflation could shift gold prices — but other factors may have more of an impact right now. Here's why.

Annualized inflation eased to a 2.3 percent pace, the lowest since early 2021. But the month-to-month pace of inflation increased.

The improvement in inflation comes as President Donald Trump secures a couple of important trade deals. Consumer prices rose less than expected in April, with the pace of annual inflation falling to its lowest level since early 2021, the Bureau of Labor Statistics reported on Tuesday.

Americans saw some relief on inflation last month, though the trade war will likely push prices of everyday goods higher in the coming months. The consumer price index climbed 2.3% year over year in April,

Japan's wholesale inflation hit 4.0% in April as companies continued to pass on rising raw material and labour costs, data showed, underscoring price pressure that will likely keep the central bank on course to raise interest rates further.

Stocks closed mostly higher on Tuesday after the release of encouraging inflation data, adding to big gains posted the previous session following a de-escalation in the trade spat between the U.S. and China.