How could CPI data help gold prices?

Economists are busy analyzing gold price expectations ahead of the US Consumer Price Index (CPI) report. Gold prices are finding a footing with CPI data that is awaited on Wednesday, and on that note, markets do expect to witness a below consensus CPI print, which could help the precious metal find further support.

We are now expecting a final 25 bps rate increase in the Fed funds rate at the July FOMC meeting, which suggests the precious metal is not quite ready to take off just yet given the accumulation of broadly firmer-than-expected activity over the past few weeks and the Fed’s obvious inclination to hike again.

The yellow metal is likely to continue under pressure for the foreseeable future as concerns grow that the Fed’s tightening cycle is not over.