The post XAU/USD consolidates its gains around $1,960, Chinese, US data eyed appeared on BitcoinEthereumNews.com.

Gold price remains sidelined as bulls take a breather around $1,960. The US headline Consumer Price Index (CPI) grew 3.2% YoY vs. 3.7% prior, below the market estimation. The escalating geopolitical conflicts in the Middle East could boost the demand for gold. The Chinese Industrial Production and Retail Sales will be closely watched ahead of the US data. Gold price (XAU/USD) consolidates its recent gains after reaching $1,971 during the early Asian session on Wednesday. The weaker-than-expected US inflation and a decline in US Treasury yields boost precious metal demand. Also, the rising geopolitical tensions will fuel the safe-haven flows. The gold price currently trades near $1,960, losing 0.10% on the day. Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, falls to the 104.00 area, the lowest level since early September. The US Treasury bond yields dropped sharply, with the US 10-year yield falling from 4.60% to 4.45%. Gold benefits from this development and bounces off the $1,940 low. The US Consumer Price Index (CPI) is probably alleviating the Fed’s pressure to further tighten monetary policy this year. This, in turn, triggers some follow-through buying in the precious metal. That being said, the US CPI came in worse than expected, growing 3.2% YoY versus 3.7% prior, below the market consensus of 3.3%. Meanwhile, the core measure rose by 0.2% MoM and 4.0% YoY. The Gaza Strip has been under a total Israeli blockade since Hamas launched an attack on Israel on October 7. The rising geopolitical tensions in the Middle East could trigger the demand for gold. Gold traders will monitor the Chinese Industrial Production and Retail Sales for October, due on Wednesday. The weaker-than-expected data could fuel the concern of economic slowdown in the world’s…

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Filed under: News - @ November 15, 2023 6:24 am