Gold price meets some supply, snapping a nine day winning streak and reaching a record high.

The gold price (XAUUSD) edged lower throughout the Asian session on Tuesday. Albeit with little follow-through, and remains comfortably within striking distance of the record high reached last week. Traders prefer to wait on the sidelines and look to the newest US consumer inflation numbers for more hints. Regarding the Federal Reserve’s (Fed) rate cut path before placing new directional bets around the Yellow metal that produces no yield. Meanwhile, rising consensus that the US central bank would drop its key interest rate at the June policy meeting causes US Treasury bond yields to fall further. This puts the US Dollar (USD) bulls on the defensive and should provide as a tailwind for the commodities.

The drop could be linked to profit-taking ahead of the key US CPI report.

Meanwhile, an increase in the US unemployment rate strengthened the case for an impending shift in the US central bank’s monetary position. However, during his semi annual congressional testimony last week. Fed Chair Jerome Powell stated. That persistently high inflation could impede an early rate cut. As a result, a higher US CPI figure may allow the US central bank to imply fewer rate cuts this year. Prompting some near term selling around the Gold price. A lower reading, on the other hand, might fuel speculation about an early rate decrease. Giving the XAUUSD a slight boost. Nonetheless, the important data is likely to increase volatility. And create short term opportunities for the precious metal.

Daily Market Movers: Gold price bulls get cautious ahead of US consumer inflation data.

Some repositioning activity ahead of the critical US consumer inflation statistics. Puts some pressure on the gold market during the Asian session. But a substantial corrective decline remains elusive.
The critical US CPI report will have a significant impact on expectations. Regarding the timing and speed of rate cuts by the Federal Reserve. Providing a new impetus to the XAUUSD.
The headline CPI is predicted.
to rise to 0.4% in February. With the annual rate projected to remain steady at 3.1%, while the Core CPI is expected to fall to 3.7% YoY from 3.9% before.
The mixed US monthly jobs report released on Friday increased rate cut forecasts while dragging the yield on the benchmark 10 year US government bond to a five-week low near 4.0%.

Bets on a June Fed rate drop will keep USD bulls on the defensive and should provide support.

According to the CME group’s FedWatch tool, traders are presently pricing in a roughly 70% possibility of a rate decrease by June. Keeping USD bulls on the defensive and supporting the metal.
A sticky inflation report. However, will be a little challenging for the commodities. But a cooler CPI figure will enhance bets for to rise to 0.4% in February, with the annual rate projected to remain steady at 3.1%, while the Core CPI is expected to fall to 3.7% YoY from 3.9% before.
The mixed US monthly jobs report released on Friday increased rate-cut forecasts while dragging the yield on the benchmark 10-year US government bond to a five-week low near 4.0%.
According to the CME group’s FedWatch tool. Traders are presently pricing in a roughly 70% possibility of a rate decrease by June, keeping USD bulls on the defensive and supporting the metal.
A sticky inflation report. However, will be a little challenging for the commodities. But a cooler CPI figure will enhance bets for