- Gold price holds gains tightly as Fed policymakers support an unchanged monetary policy ahead.
- The US Dollar reported bearish closes six times in a row as hawkish Fed bets wane.
- US CPI data came in broadly in line with market expectations.
Gold price (XAU/USD) faces some selling pressure as the Inflation report for September remained majorly in line with estimates. The monthly core Consumer Price Index (CPI) that excludes volatile oil and food prices expanded by 0.3% and the annual data decelerated to 4.1% as expected by the market participants. The headline inflation remained higher than expectations as a rally in global oil prices spurted prices of gasoline and food products. The headline CPI grew at a higher pace of 0.4% on month, while investors forecasted a pace of 0.3%. The annual headline CPI grew at a steady remained steady pace of 3.7%, marginally higher than expectations of 3.6%.
The US Dollar Index (DXY) rebounds swiftly as investors expect that no progress to ease in inflationary pressures could allow the Federal reserve (Fed) to raise interest rates further in November.
