Gold Prices Rebound Ahead of US Inflation Data Release
Gold futures climbed 0.8% to $4,990 per ounce as markets braced for January's CPI data, a key indicator for Federal Reserve policy. Spot prices surged 1.1% to $4,973.49, recovering from a 3% plunge the prior session.
Deutsche Bank projects monthly CPI at 0.26%, down from December's 0.31%, with annual inflation cooling to 2.5%. Geopolitical tensions fueled safe-haven demand after reports signaled US deployment of a second aircraft carrier to the Middle East amid stalled Iran nuclear talks.
The dollar index edged up 0.2% to 97.05 while sterling held steady at $1.3617. Today's inflation print could redefine the trajectory of monetary policy and precious metal valuations.