Gold Recovers Ahead of US Inflation Data
Gold rebounded on Friday after being hit hard the previous day, when some market participants quickly sold to secure liquidity. This time, dip buyers began to step in ahead of the release of US inflation (CPI)—data that typically determines the direction of Fed interest rate expectations and risk-on/risk-off sentiment in global markets.
In recent trading, spot gold rose more than 1% and briefly touched around $4,969.85/oz. This rebound came after gold plunged around 3% on Thursday, amid cross-asset volatility triggered by market concerns about the earnings outlook for the technology sector (AI theme) and widespread selling pressure.
Gold's rise was also followed by gains in other metals, confirming that yesterday's pressure was more like forced selling than a long-term fundamental shift. Silver jumped around 3.9% to $78.11/oz, while platinum and palladium also rallied. However, volatility remained high as market participants waited to see whether the CPI would reinforce the interest rate cut scenario or reverse its path again.
The bottom line: the market is currently entering a "data validation" phase. If the CPI is hotter than expected, the dollar and yields could benefit, and gold could be resilient. However, if the CPI is more benign, gold usually has more room to recover—especially after the market's position was "reversed" by yesterday's wave of liquidations. (alg)
Source: Newsmaker.id
