The price of gold went up again last week, with the U.S consumer price made a record last month for the past 13 years; however, the dollar is still trying to confine the gold price. U.S consumer prices index(CPI) rose 0.9%, which is a range more than 2008. According to Reuters, the forecast for overall CPI to rise 0.5%.
Analysts believe that the situation is unlikely to trigger the monetary policy to change. “It’s going to take a string of these hotter numbers on the inflation readings to move the needle for the Fed. One month’s reading is not going to do it,” said Jim Wyckoff, senior analyst with Kitco Metals.
Traders will keep their eyes on Powell’s testimony before Congress to see any hint that leads to the central bank’s assets purchases. “If the current trend for inflation continues then surely the central bank will have to react and sooner,” said Fawad Razaqzada, analyst with ThinkMarkets.
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