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

The U.S. dollar stabilised on Wednesday following its biggest decline in more than three weeks overnight, with softer-than-expected U.S. consumer inflation data bolstering the case for Federal Reserve easing just as global trade tensions cool.

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

After slight deflation in March, prices rose again in April. The Bureau of Labor Statistics (BLS) reports that the Consumer Price Index (CPI) increased 0.2 percent last month.

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,

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.

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.

The April consumer price index, a key gauge of U.S. inflation, came in slightly lower than economists expected at 2.3% in April, but was still higher than the Federal Reserve's 2% goal. CBS News MoneyWatch correspondent Kelly O'Grady has more.