At 11:54 GMT, XAU/USD $ 2916.45, an increase of $ 12.49 or +0.43%.
Gold profits in the field of trade war and dollar weakness
The rise in Gold is also fed by renewed concerns about American trade policy. President Donald Trump’s announcement of mutual rates for countries that have injected the import of the US tax has injected uncertainty on global markets, stimulating the demand for safe port assets.
A weaker American dollar adds further support. The dollar index fell by 0.2%, making gold more affordable for foreign buyers. In the meantime, investors remain focused on coming American inflation data, with the release of producer Price Index (PPI) expected at 13:30 GMT, followed by the Retail Sales Report on Friday.
Hot inflation data sparks market reactions
Gold initially fell more than 1% on Wednesday after the data from the US Consumer Price Index (CPI) are hotter than expected. The CPI of January rose by 0.5%month-over-month, with the forecasts of 0.3%, while the annual inflation reached 3%, slightly above the expected 2.9%. Core inflation, which excludes food and energy, also exceeded expectations at 3.3% on an annual basis.
The chairman of the Federal Reserve Jerome Powell repeated that the central bank is not in a hurry to lower the interest rates, which strengthens market expectations that the FED will remain careful. Futures markets have adapted, now that the pricing in a chance of 78% of a 25-based point reduction in September, with the expectations that rise to 94% in October.
Treasury proceeds in Focus while traders are waiting for data data
US Treasury proceeds were initially after the CPI release, but withdrew on Thursday, while traders showed the inflation data and further insights awaited the PPI report. The heter Dan expected CPI print has delivered that inflation remains sticky and possibly slows the decreases of the FED rate.