Gold remains range-bound as traders await next week’s U.S. CPI report. Inflation data could drive the next move in gold prices amid shifting Fed rate expectations.
Gold Prices Steady as Traders Eye U.S. CPI Report for Direction
Gold continues to trade within a narrow range as investors shift focus to the upcoming U.S. Consumer Price Index (CPI) report, due next Tuesday. According to Jinshi Data, recent U.S. non-farm payrolls data contributed to a stronger dollar and dampened gold’s upward momentum, as markets reassessed expectations for Federal Reserve rate cuts.
Market analysts suggest that weaker CPI data could provide support for gold, potentially sparking a new leg higher. Conversely, stronger inflation numbers may prompt renewed selling pressure as traders anticipate fewer or delayed rate cuts.
From a broader macroeconomic perspective, gold remains supported by the potential for declining real yields in an environment of easing monetary policy. However, in the near term, hawkish repricing of interest rate expectations could lead to short-term volatility or pullbacks in the gold market.