Gold slips below $4,600 as US CPI cools
Gold prices (XAU/USD) weakened slightly on Tuesday (January 13) after the release of US inflation data for December showed price pressures were beginning to ease.
Gold traded around $4,590 per troy ounce, down 0.15%, after hitting a new record of $4,634 during the same session.
The more benign inflation data reinforced the view that the Fed still has room to cut interest rates this year. However, gold's movement was restrained by the stable US dollar, limiting the precious metal's gains. The BLS reported that headline and core inflation remained relatively stable compared to the previous month, signaling that the cooling trend is still ongoing.
In other data, the market assessed that labor market conditions were showing improvement, while comments from Fed officials—including St. Louis Fed President Alberto Musalem—sounded neutral to firm, keeping the market cautious about locking in expectations of interest rate cuts too quickly.
Although financial markets still expect policy easing of around 50 basis points by the end of the year, political issues surrounding pressure on the Fed's independence have added to the noise and made market participants more cautious.
Beyond data, gold remains cushioned by geopolitical factors. Concerns about the independence of the US central bank and escalating Middle East tensions are keeping safe-haven demand alive.
Trump also announced plans for 25% tariffs on countries doing business with Iran, potentially adding pressure on the global trade landscape.
Next, the market will monitor the release of further US data such as PPI, retail sales, and a series of Fed officials' speeches to gauge the direction of the dollar, yields, and gold's next move. (yds)
Source: Newsmaker.id
