OK! This time the gold won - Kakiforex | Forex markets for the smart money. OK! This time the gold won OK! This time the gold won

March 11, 2021

OK! This time the gold won

 Gold trading surged higher in the Asian session after US inflation data showed weaker -than -expected readings and this caused US treasury yields and the US dollar to stop rising.

The consumer price index (CPI), which measures inflation, met market expectations by rising 0.4% in February. However, core inflation rose only 1.3% compared to expectations for a 1.4% increase.

These readings suggest that rising inflation is not as feared by markets who are worried it will exceed the 2% target by the Federal Reserve (Fed).

As a result, 10 -year US bond yields continued to hover around the 1.5% level and greenback dollar trading continued to decline against most major currencies at the beginning of the Asian session.

The decline gave the yellow metal a boost to a one -week high and traded around $ 1,731 an ounce (12.15pm Malaysian time).

Meanwhile, the $ 1.9 trillion stimulus package bill got easy approval on Wednesday after going through debate at the House level. President Joe Biden is expected to sign it into law on Friday.