Gold Rises Again—New Record After CPI
Gold (XAU/USD) climbed to a fresh all-time high of $4,634 per troy ounce after the latest US inflation report, extending its bullish run as markets remain highly sensitive to political and geopolitical risks.
Figures from the US Bureau of Labor Statistics showed headline CPI running at 2.7% year-on-year, in line with expectations. Core CPI, which strips out food and energy, came in at 2.6%, below market forecasts around 2.7%–2.8%. The softer core reading helped reinforce the view that inflation pressures are easing, reducing the need for any abrupt shift in market expectations.
Even so, the CPI print did little to change the broader assumption that the Fed is likely to keep rates unchanged at its late-January meeting. Instead, attention has shifted back to concerns over the Fed’s independence. Jerome Powell referenced a subpoena tied to an investigation into the Fed’s office renovations, and suggested the scrutiny is linked to political pressure to push rate cuts. When investors start questioning the central bank’s distance from politics, gold typically draws fresh demand as a hedge.
In currency markets, the US dollar held steady with the DXY near 99, while Treasury yields were mixed—around 3.56% for the 2-year and 4.17% for the 10-year. With yields not surging and geopolitical tensions still simmering, gold has stayed firmly elevated. Traders are now watching whether prices can extend to new highs or pause for consolidation after the recent strong rally.
Source: Newsmaker.id
