Gold has given back nearly all of last Wednesday’s post-CPI release rally and is now back at an important chart level that has steered price action over the last few weeks. The precious metal’s main driver remains the US dollar which in turn is being driven by US Treasury yields and future inflation expectations. The yield on the market barometer UST 10-year is now back above 1.60% and is close to printing a fresh multi-week high, helping the greenback push back off last week’s lows. There are a clutch of Fed members speaking tomorrow and their comments need to closely followed for further indications on tapering and price pressure expectations.
