Gold continues to recover from last week’s selloff and starts the week on a high in anticipation of US inflation data The upcoming Producer Price Inflation (PPI) on Tuesday and Consumer Price Index (CPI) on Wednesday are expected to provide clues regarding the Federal Reserve’s next moves.
Higher-than-expected US inflation data could put some pressure on gold as interest rate cuts expectations could recede. Conversely, cooling inflation could bolster expectations of a softer monetary policy and help drive gold prices to the upside.
Additionally, geopolitical tensions, especially in the Middle East, continue to support gold. With no immediate resolution in the conflict in sight, investors could continue to flock toward gold.
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