Gold Recovers Slightly After Tariff Plan
Gold (XAU/USD) prices halted their poor performance on Monday as concerns over Federal Reserve (Fed) interest rate policy took over sentiment, recovering slightly and trading near $2,670 at the time of writing on Tuesday.
The sentiment has now turned again to relief on headlines that President-elect Donald Trump’s administration is considering a gradual implementation of its tariff plan. Sources close to the matter revealed that the Trump administration is very concerned about an inflation shock and wants to avoid it at all costs.
On the economic data front, some cautionary words need to be issued. Ahead of the US Consumer Price Index (CPI) on Wednesday, the Producer Price Index (PPI) is due this Tuesday.
Traders need to be wary of some knee-jerk reactions in yields, as a surprise rise in the PPI figure could spill over into expectations for a hot CPI release.
Source: FXStreet