Holding Below $2000

Gold is steady in the Asia-Pac session, after closing unchanged at $1992.33 on Wednesday.

• Bullion saw little respite from a weaker USD and lower US Treasury yields after yesterday’s CPI-induced rout.
• US Treasuries recouped some of Tuesday’s post-CPI sell-off. US Treasuries bull-steepened, with yields 2-8bps lower. Comments from the Fed's Goolsbee, downward revisions to December PPI data, a rethink of the CPI data, and a lack of follow-through selling presented a buying opportunity for the bond bulls.
• Chicago Fed’s Goolsbee (’25 voter) stuck to his dovish guns: “As I always say, especially about inflation, one month is no months. Let’s not get amped up when you get one month of CPI that was higher than what you expected it to be.”
• US PPI data for December was revised down from -0.1% to -0.2%.
• Looking ahead, Thursday brings a heavy US data calendar with weekly Claims, Retail Sales, Imp/Exp, IP/Cap-U, and TIC Flows.
• Fed speak includes Fed Gov Waller on the USD's international role at 13:15 ET, and Atlanta Fed Bostic on monetary policy (text, Q&A) later at 19:00 ET.