Gold holds below $2,700 as Markets await key US CPI data
Gold prices edged higher in early European trading, remaining rangebound just below the $2,700 mark. The precious metal found support following yesterday’s release of US PPI figures, which showed producer prices were lower in December than anticipated. This development has fuelled hopes that US inflation might decline in the months ahead—a scenario that, if confirmed, could prompt a softer stance from the Federal Reserve. Such a shift could pave the way for further monetary easing, potentially leading to lower Treasury yields and a weaker dollar, thereby supporting non-yielding gold. However, such optimism may prove to be wishful thinking for gold enthusiasts. Today’s consumer price index (CPI) data release could serve as a reality check. With expectations pointing to persistently sticky inflation, the upside for bullion prices may remain constrained.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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