The price of Gold fell below $2,000 after US inflation was stronger than expected. ANZ bank strategists analyze the prospects for the yellow metal.
US Treasury Yields and Dollar Rebounded After Strong CPI Release
The core CPI rose 0.4% month-on-month in January and reduced hopes of an early rate cut.
The price of Gold came under immediate pressure as US Treasury yields and the USD rallied following the release.
Since mid-December, the precious metal has remained above the key psychological level of $2,000, on hopes that the US central bank would quickly reduce funding costs. With that now looking unlikely, the price of Gold could come under further pressure if economic data remains strong.
Source: Fx Street
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