XAU/USD spikes to fresh multi-week high, above $1,970 post-US CPI


  • A combination of supporting factors pushed spot gold to a fresh multi-week high on Tuesday.
  • The US CPI accelerated to 8.5% and boosted the metal’s appeal as a hedge against inflation.
  • Retreating US bond yields prompted some USD profit-taking and further extended support.

Gold caught some bids during the early North American session and jumped to a fresh multi-week high, around the $1,973 region in the last hour. The US consumer inflation showed little signs of easing and topped 8% in March for the first time in more than four decades. In fact, the headline CPI accelerated to 8.5% during the reported month as against expectations for a rise to 8.4% from 7.9% in February. This, in turn, was seen as a key factor that boosted the metal’s appeal as a hedge against inflation. The intraday move up was further fueled by modest US dollar weakness, which tends to benefit the dollar-denominated commodity.

Given that the markets have priced in a 50 bps Fed rate hike move in May, the USD witnessed a typical “buy the rumour, sell the news” kind of trade amid a sharp fall in the US Treasury bond yields. Core CPI was a shade below expectations, which might have forced investors to scale back expectations for a more aggressive policy tightening. That said, concerns that the recent surge in commodity prices would continue to put upward pressure on inflation should limit the downside for the US bond yields. This, in turn, supports prospects for the emergence of some USD dip-buying, which should keep a lid on any meaningful upside for spot gold.

Apart from this, a goodish rebound in the equity markets could further collaborate to cap gains for the safe-haven XAU/USD. Even from a technical perspective, gold was last seen trading near the top end of an upward sloping channel extending from sub-$1,900 levels, or March swing low. This further makes it prudent to wait for some follow-through buying before confirming that the recent slide from the vicinity of the all-time high has run its course and positioning for any further gains. Nevertheless, gold, so far, has managed to hold in positive territory for the fourth straight day and remains at the mercy of the US bond yields/USD price dynamics.

Gold 4-hour chart

Key levels to watch

 



Source link

Related articles

Meta’s new Ray-Ban Show sensible glasses value as a lot as a Pixel 10

TL;DR Meta has launched the Ray-Ban Show, a pair of sensible glasses with a built-in shade show and AI options. Every pair ships with the brand new Meta Neural EMG wristband that permits you to...

The Advantage of Endurance: Why Conservative Buying and selling Wins within the MQL5 Market – Buying and selling Methods – 17 September 2025

Within the fast-paced, usually exhilarating world of algorithmic buying and selling, it is simple to get swept up within the pursuit of fast...

Logitech’s Professional X2 Superstrike gives haptic clicks and fast set off

Logitech’s subsequent flagship wi-fi gaming mouse is ditching mechanical switches for an analog system outfitted with haptics actuators to simulate the sensation of a click on. The mouse is known as the Professional...

REX Shares Claims Its DOGE And XRP Spot ETFs Will Be Accepted By US SEC Tomorrow

US-based REX Shares has stirred vital anticipation within the crypto group by asserting the launch of its Dogecoin (DOGE) and XRP exchange-traded funds (ETFs) on September 18.  Imminent Launch Of REX Shares’ DOGE And...

The European indices shut blended German DAX and UK’s FTSE 100 rising

Main European indices are closing the day with blended outcomes:German DAX +0.13%France's CAC -0.40%UK's FTSE 100 +0.14%Spain's Ibex -0.24%Italy's FTSE evaluation was the worst performer with a decline of 1.29% different markets, the...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com