Gold Rebounds Ahead of CPI, Still Stuck Below $5,000
Gold attempted to recover on Friday (February 13th) after being dragged down by a major sell-off the previous day. In the latest trading session, spot gold rose around 1.1% to $4,978.24/oz, but remained below the psychological $5,000 level as the market adopted a "wait-and-see" mode ahead of the US CPI release, which could potentially alter Fed interest rate expectations.
This recovery comes after gold slipped around 3% on Thursday, when broader market turmoil triggered liquidity needs (including margin calls) and prompted some traders to unwind commodity positions. Technical factors, such as algorithmic selling flows, are also considered to have contributed to yesterday's decline being felt more quickly and deeply.
From a fundamental perspective, the strong US employment data previously reduced the likelihood of a "sooner" interest rate cut. However, the dollar did not continue to strengthen aggressively, giving gold room for a slight rebound. Now, the focus is fully on the US CPI: if inflation is hotter than expected, expectations of prolonged high interest rates could pressure gold; conversely, a more benign CPI could potentially pave the way for a further recovery.
Source: Newsmaker.id
