On Wednesday, gold prices found themselves under pressure following the release of March’s inflation figures in the United States (US). The data revealed an increase in both monthly and annual readings, potentially undermining the Federal Reserve’s (Fed) inclination towards easing monetary policy.
In the aftermath of the data release, US Treasury yields climbed, the US Dollar strengthened, and US real yields surpassed the 2% threshold, posing challenges for the precious metal.
The XAU/USD spot rate currently stands at $2,336, reflecting a 0.66% decline subsequent to the US Consumer Price Index (CPI) announcement. The US Bureau of Labor Statistics (BLS) reported that March’s CPI exceeded expectations, although it remained unchanged in three out of the four inflation readings compared to February’s data. Nevertheless, headline inflation surged beyond annual forecasts and the previous month’s reading.
