US Inflation Softens, Gold Rebounds
Gold prices continued their rally on Friday (February 13th) after being hit hard in the previous session, as the market digested more benign US inflation data and returned to safe havens amid escalating Middle East tensions.
Spot gold rose +1.0% to $4,976.45/oz, after touching above $5,000/oz around 9:30 a.m. ET—this rebound came after spot had plunged more than 3% the previous day.
Recoveries also occurred in other precious metals: spot silver surged +4.3% to $78.945/oz after previously falling by around 10%, while platinum rose +1.6% to $2,054.90/oz and returned to above $2,000/oz. Silver's most aggressive rally reflected a strong rebound after the wave of cross-asset liquidation subsided.
On the macro front, the latest CPI data provides some breathing room for an interest rate cut scenario this year: headline CPI slowed to 2.4% yoy (below the 2.5% forecast) and rose 0.2% mom (below the 0.3% expectation). Core CPI was recorded at 2.5% yoy and 0.3% mom (in line with expectations). These figures suggest the market is assessing that inflationary pressures are not worsening—which is usually a positive sentiment for gold, as the precious metal offers no yield.
However, the next direction remains sensitive as the Fed is still weighing two "big packages": labor market resilience and inflation. As long as the "higher interest rates for longer" narrative remains intact, gold's rally is likely to remain gradual. At the same time, geopolitical factors—particularly signals of increased US vigilance in the region—are helping to contain the potential for a deeper correction and maintain safe-haven demand.
Source: Newsmaker.id
