Gold Retreats Slightly, Markets Alert Ahead of CPI
Gold prices weakened slightly in the Asian session on Friday (April 10), but remained on track for weekly gains as the market assessed that the fragile US-Iran ceasefire still provides safe-haven support. At the same time, market participants tended to hold positions ahead of US inflation data and weekend talks expected to provide clues on the direction of geopolitical risks.
Spot gold fell 0.4% to $4,744.50/oz at 10:30 PM ET (02:30 AM GMT), remaining below its three-week peak. Meanwhile, US gold futures fell 1% to $4,764.67, while gold is projected to rise by around 1.5% weekly, posting its third consecutive weekly gain.
Geopolitically, sentiment remained relatively stable following the announcement of the temporary ceasefire, but the agreement is showing signs of fragility as military activity in Lebanon continues. The Strait of Hormuz is also said to remain largely shut, and Trump has criticized Iran for its perceived "poor job" of facilitating energy supply flows, so the risk of supply disruptions remains a key factor in commodity prices.
The focus next shifts to the US Consumer Price Index (CPI) release scheduled for Friday, which could clarify expectations for the Fed's policy direction. Economists' consensus forecasts for headline inflation to strengthen amidst the surge in energy prices related to the Middle East conflict, while global inflation concerns have intensified after oil briefly approached $120/barrel and then weakened this week. This could reinforce the "higher for longer" interest rate narrative and impact gold's appeal through the real yield channel.
The dollar's movements also shaped the week's dynamics: the dollar index edged up 0.1% on the day, but was still down more than 1% on the week, making gold cheaper for non-US buyers and helping to support the weekly gain. In other metals markets, silver remained relatively stable at $75.35/oz, while platinum weakened; its future direction will be largely determined by the CPI results and the tone and substance of US-Iran talks later this week. (asd)
Source: Newsmaker.id
