XAU/USD rises to $4,023-$4,024 as traders await US inflation figures and Fed testimony for rate cues.
Gold prices climbed to the $4,023-$4,024 range, extending an intraday recovery from a nearly two-week low. The move follows a pause in the US Dollar’s two-day rally as investors adopt a cautious stance ahead of key US inflation data and Federal Reserve testimony.
The US Consumer Price Index report, due later today, is expected to show a decline in headline inflation due to lower gasoline prices. However, core CPI figures, which exclude volatile food and energy costs, will be closely watched for underlying inflation trends. Fed Chair Kevin Warsh’s testimony before Congress may further shape expectations for future rate hikes.
Geopolitical tensions, including US-Iran escalations and the closure of the Strait of Hormuz, have lifted crude oil prices, stoking inflation concerns and supporting higher-for-longer US interest rates. This dynamic adds uncertainty to gold’s near-term outlook.