Gold price regained momentum following US CPI data, moving up towards 1,910 per troy ounce to end a two-day losing streak.

The US Consumer Price Index (CPI) surged unexpectedly from 3.2% to 3.7% in August, surpassing the market’s forecast of 3.6%, and the monthly core CPI increased to 0.3%.

The annual core inflation rate is unchanged from prior readings at 4.3%. The US Treasury yields increased as a result of the stable Core Consumer Price Index, although they later decreased. With a more dovish Fed, market sentiment improves.

Investors’ dovish attitude has supported gold prices and weakened the US Dollar. The CME FedWatch Tool predicts unchanged interest rates for the September meeting, indicating a growing expectation of a dovish Fed.

The Federal Reserve’s 40% chance of raising rates by 25 basis points in November is increasing, causing investors to become cautious due to the changing economic environment and Fed remarks.

Investors’ estimates for a potential rate hike in November or later are a reflection of the uncertainties and shifting expectations for Fed policy. The US Dollar is trading lower around 104.60, while the US Dollar Index (DXY) is reversing gains, indicating selling pressure or a correction following recent strength.

Currently, market investors are focusing on upcoming data releases from the United States (US), such as the Core Producer Price Index (PPI) and August retail sales numbers.

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