U.S. CPI On The Horizon

A flat start for gold this week, consolidating Friday’s uptick, even with U.S. Tsy yields nudging higher and the DXY trading on the front foot (although the USD trades in more of a mixed fashion within G10 FX on a more granular level). This comes after Friday’s post-NFP pullback in our weighted U.S. real yield monitor, coupled with the DXY pulling back from best levels, supported gold. Spot last deals around the $1,785/oz mark, with a familiar technical overlay remaining in play. Looking ahead, Friday’s U.S. CPI print provides the notable fundamental risk event for participants over the coming days. A reminder that the Fed is now in its pre-meeting blackout period, so we won’t get anything more from the central bank until next Wednesday’s monetary policy decision. Further afield, Chinese monetary policy matters continue to garner attention, with speculation rife re: the prospect of a fairly imminent RRR cut from the PBoC in the wake of Friday’s guidance from Chinese Premier Li.