Gold and silver fall ahead of U.S. CPI: Rebound opportunity or further downside? - Yahoo Finance Australia

AI desk brief

Gold and silver slipped ahead of the U.S. CPI release as the dollar held near an 18-month high, keeping pressure on dollar-priced metals. Reuters cited spot gold at $4,164.45/oz (-0.2%), December gold futures at $4,187.90/oz (-0.1%), and spot silver at $60.01/oz (-0.5%), with platinum and palladium also lower.

The key trade catalyst is today’s CPI print: headline is forecast at +0.6% m/m and +3.6% y/y, with core seen at +0.2% m/m and +2.5% y/y. CME FedWatch was cited at roughly 21% odds of an October Fed hike and 88% for December; hotter-than-expected inflation would likely reinforce higher yields and further pressure metals, while a softer print could ease the dollar/Treasury backdrop and support a rebound. Peter Grant of Zaner Metals sees gold retesting $4,000/oz before potentially recovering to $4,400/oz by year-end.