Gold prices move with slight increases, as investors anticipate US CPI and PPI data.

On Wednesday, the gold price (XAUUSD) traded slightly higher against the lower US dollar (USD).

The rising demand for XAU, combined with geopolitical tensions, raises precious metal prices.

Rising gold demand from solid over-the-counter (OTC) market investments. Persistent central bank purchases, and safe-haven flows amid Middle Eastern geopolitical risk all work as a tailwind for the XAUUSD price. Nonetheless, the Federal Reserve (Fed) officials’ hawkish views. Notably Chairman Jerome Powell’s plan to maintain interest rates higher for a longer period, may weigh the yellow metal. Lower in the near term.

The US CPI and PPI figures on Wednesday could provide some insight into the Fed’s monetary policy direction.

The US Consumer Price Index (CPI) for April will be revealed later on Wednesday. And it may provide clues as to when the Fed’s initial rate change may occur. In addition, the April Retail Sales report will be released. Providing insight into consumer purchasing trends. The hotter-than-expected inflation figures may prompt the Fed to take a more aggressive approach. Boosting the Greenback and putting some selling pressure on USD-denominated gold.

Daily Market Movers: Gold price gains pace amid gold investment demand.

The US Producer Price Index (PPI) increased 2.2% year on year in April. Compared to 1.8% in March, and met forecasts. The Core PPI increased by 2.4% year on year during the same period, compared to a 2.1% increase. In March. In April, both the PPI and the core PPI increased by 0.5% month on month.
Fed Chair Jerome Powell stated that inflation is decreasing slower than projected, and the PPI report provides another justification to keep interest rates higher for longer. Powell went on to say that additional rate hikes are unlikely.

Kansas City Fed President Jeffrey Schmid stated that inflation remained too high.

Kansas City Fed President Jeffrey Schmid stated that inflation remained too high, and the US central bank has more work to do.
The annual headline Consumer Price Index (CPI) inflation rate is likely to fall to 3.4% in April, down from 3.5% in the initial estimates. Core CPI inflation is expected to fall to 3.6% in April from 3.8% previously.
Retail sales in the United States are expected to drop by 0.4% month on month in April from 0.7 percent in the preliminary reading.
According to the CME’s FedWatch Tool, financial markets presently expect the Fed to slash interest rates in September 2024 by approximately 65%.
Global gold demand increased by 3% to 1,238 tonnes, making it the greatest first quarter since 2016, according to the World Gold Council’s Q1 2024 report.