Gold Prices Move Higher Ahead Of CPI Report

LONDON (October 10) Gold is moving higher as traders prepare for the release of U.S. CPI data. The report is expected to show that Inflation Rate declined from 2.5% to 2.3%, while Core Inflation Rate remained unchanged at 3.2%.

The CPI report will likely have a material impact on U.S. dollar and Treasury yields dynamics, so it will be a major catalyst for gold markets.

At this point, U.S. dollar settled at multi-week highs as traders focused on the recent changes in Fed policy outlook. As the U.S. economy remains in decent shape, markets do not expect that Fed will continue to cut rates aggressively, which is bullish for the American currency and bearish for gold markets.

Today, traders will also focus on geopolitical developments as Israeli Defense Minister has recently said that the country’s response to Iran’s attack would be “deadly”. As a traditional safe-haven asset, gold benefits from rising geopolitical tensions.

FXEmpire