Gold Price Forecast: XAU/USD could make a renewed bid for $1,800 on CPI downside suprise – Commerzbank

Gold price grinds higher ahead of the US Consumer Price Index (CPI). Softer-than-expected data could lift XAU/USD to the $1,800 level, strategists at Commerzbank report.

Gold price under the spell of US inflation figures and Fed

“The market now firmly believes that rates will be increased by 50 basis points. The Fed had raised its key rate by 75 bps at each of its previous four meetings. According to the Fed Fund Futures, interest rates are likely to peak at around 5% next May/June.” 

“The US inflation data for November could prompt another shift in market expectations and thus affect the short-term performance of the Gold price. In the event of a surprise to the downside, XAU/USD could make a renewed bid for the $1,800 mark after dipping yesterday.”

See – US CPI Preview: Forecasts from 10 major banks, inflation appears to have peaked