Gold Rises Ahead Of Inflation

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Gold Rises Ahead Of Inflation

Gold (Xau/Usd) Rises Ahead Of Us Inflation

Gold (XAU/USD) prices have started to rise on Wednesday as the Asian session unfolds. In the process, Gold (XAU/USD) also managed to recover some of the losses resulting from the dollar rally.

It all started with Trump's election win, which led to a USD rally. Now that the rally is slowly fading away, investors are turning their attention to gold (XAU/USD).

All Precious Metals Trend Higher

Also, the US CPI is due, which is a high-risk event for the US Dollar. That's also a reason why traders flock to gold.

The Gold (XAU/USD) tumbled form highs and was in the red for the last few weeks. This was intensified with the Trump's election win which led to risk-on rally around the world.

As a result of this, Gold (XAU/USD) dropped to 2-month lows. But now, things are changing once again for the yellow metal.

Spot gold is trading near $2609 with a 0.5% gain, while the Gold futures (December) are trading at $2615.70 with a -0.4% change.

According to the forecast, the CPI will reveal that inflation is still sticky, which would be bad news for the Fed's rate cut policy.

Trump's win has made it very difficult to assess the inflation situation properly. His plans are aimed at driving growth, which will also lead to higher inflation in the country. Now, it remains to be seen how the US Federal Reserve will adjust its policy to align with Trump's actions.

Meanwhile, most of the precious metals will be green on Wednesday, with a few registering losses. The Silver futures have gained 1.1%, while the Platinum futures are up by 0.7%.

Regarding the situation, Fed Kashkari made it clear that the US central bank will pause its rate-cutting cycle if the inflation jumps higher.

If we look at the industrial metals, the Copper prices are down a little bit on Wednesday. This is mainly due to the China's economic data which was underwhelming at best.

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