Investors ’expectations for U.S. inflation data put gold-yellow metal trading on high alert after it fell to its most recent three-month low in the Asian session.
At the time of writing, spot gold is trading gloomily at $ 1,836 an ounce, its weakest level since February. Gold futures were down $ 1,835 an ounce.
The US annual inflation rate is forecast to decline slightly in April but remain at a 40 -year high with an increase of 8.1% from 8.5% previously recorded.
If it shows a decline, this will definitely have an impact on the movement of gold which is usually considered as a hedge to inflation by investors.
The Federal Reserve (Fed) however is seen to remain committed in implementing aggressive tightening even as US inflation rates begin to show signs of easing.
Chairman Jerome Powell previously ruled out the possibility that the central bank would implement a 75 basis -point increase in its interest rates, but assured that they would do what was necessary to fight inflation.
