Gold prices remain under pressure this Thursday after yesterday’s US CPI report showed elevated headline inflation despite a softer core inflation read. This translates through to sustained tight monetary policy by the Federal Reserve. Energy was the primary contributor to the higher headline figure and with crude oil prices expected to remain buoyant, the ‘higher for longer’ narrative is gaining traction. There may not be any additional rate hikes but rate cuts could be pushed back. If we look at money market pricing below, markets expect a rate cut around June 2024 but with data dependency holding sway over the Fed, this could easily change.