Gold Rises Modestly To $1,910 After US CPI

(March 14,2023-Matías Salord )

• US CPI numbers are mostly in line with expectations. 
• US Dollar resumes slide across the board, Wall Street futures hit fresh highs. 
• Gold holds above $1,900 after US data, looking at recent highs. 

Gold prices moved to the upside following the release of US inflation data. Gold climbed from near $1,900, reached levels above $1,910 and lost strength. The yellow metal is looking at the monthly high it reached earlier on Tuesday at $1,915.

The US Consumer Price Index (CPI) rose in February 0.4%, and the annual rate slowed down from 6.4% in January to 6.0%; both matched market consensus. The Core CPI rose 0.5% from the previous month, slightly above the 0.4% expected; and the annual Core rate rose 5.5% from the previous year, below the 5.6% of the previous month.

US Inflation numbers offered no surprise to market participants. US yield rose modestly, suggesting that the upside in Gold is being driven by a weaker US Dollar across the board and an improvement in sentiment. If the upside moves in US yields continue, gold could find difficulties extending gains.

Gold is facing a strong resistance around $1,915 and a break higher would clear the way to more gains. The next area to watch stands at $1,935/40. On the contrary, the band $1,900-$1,895 emerges as the initial support followed by $1,875.