The Impact of US Inflation, Gold Through the Sky $1,900!

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 Gold added to gains by rising higher, supported by a weak US dollar and expectations of slower interest rates by the Federal Reserve (Fed).


US inflation continued to show signs of easing, rising 6.5% in December, down from 7.1% recorded in November.


This was the sixth straight decline for US inflation from a peak of 9.1% in June, and the lowest since November 2021.



Philadelphia Fed President Patrick Harker and Atlanta Fed Raphael Bostic each saw the possibility of the central bank implementing a 25 basis point hike at its next meeting.


Following the data and statements, the greenback weakened against most major currencies and the 10-year US treasury yield continued to weaken.


Gold, on the other hand, got a push to hit a new high at $1,900 an ounce, a level not seen since April 2022.


Although gold is usually considered an inflation hedge, any change in the central bank's monetary policy can affect the trading of the precious metal.

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