Gold price battles to break $4,200: US inflation to determine Fed rate pause - Shanghai Metals Market

AI desk brief

Gold is pressing toward $4,200/oz and silver is consolidating near $61 ahead of Wednesday’s US CPI, with the inflation print likely to set the next move in Fed rate expectations. A benign CPI would support a pause in further hikes and ease pressure on precious metals via a softer dollar, while an upside surprise would revive hawkish pricing and weigh most on silver.

The article also flags weaker US consumer confidence at 46.3 and falling oil prices as recent support for metals by dampening inflation and reducing the case for more tightening. Natixis expects CPI to land in line with consensus and sees the prior hike as likely the final move in the tightening cycle, which would be constructive for gold if confirmed.