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Gold Price Outlook Now Turns to CPI Data as XAU/USD Flirts With Wedge Breakout

December 13, 2022

Via: DailyFX

Gold prices fell 0.94% on Monday, the worst single-day performance in one week. A closer at the past 24 hours shows that XAU/USD succumbed to a combination of a rising US Dollar and Treasury yields. The anti-fiat yellow metal can be quite sensitive to the latter two moving in the same direction. That is largely why gold has been having it so rough this year for the most part.

Markets likely readied up for the highly anticipated US CPI report, which is due at 13:30 GMT on Tuesday. The headline rate is seen slowing from 7.7% y/y to 7.3%. Meanwhile, the core gauge, which strips out volatile food and energy prices, is expected at 6.1% versus 6.3% prior. Moreover, the gap between headline and core is expected to narrow from 1.4 to 1.2.

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