Bullion Holds Onto Post-CPI Gains, US Retail Sales Later

Gold prices are 0.1% higher during today’s APAC session after rising 0.8% on Tuesday following lower-than-expected US CPI data that resulted in the market pricing in the end of the tightening cycle and more rate cuts for 2024. Bullion is trading around $1966.85/oz, close to the intraday high but still below yesterday’s $1970.94. The USD rose early in the session but is now 0.1% lower.

• Gold prices remain below resistance at $1978.40, November 7 high, as the flight-to-quality war risk premium was unwinding prior to the US inflation data.
• ANZ believes that the lower US CPI read and the subsequent increase in Fed easing expectations may result in increased investment demand for gold. They also think that increased occurrences of global tensions will create structural geopolitical demand for bullion, including from central banks.
• Later the Fed’s Barr and Barkin speak plus there is US October retail sales, the control group is expected to rise 0.2% m/m, and PPI data. There are also UK CPI/PPI and euro area IP.