Gold rallies post tamer US inflation reading

Spot gold is trading at $1964.11 per ounce at the time of writing. Gold prices have surged in early US trading session, following a slightly tamer US inflation report.

The consumer price index report for October came in at 3.2% year-on-year, falling into the camp of US monetary policy doves who want to see the Federal Reserve halt its interest-rate-tightening cycle. US Treasury yields were down-ticked on the CPI data, and the US dollar index sold off.

Asian and European markets were mixed to firmer in overnight trading. Risk appetite has slowly crept back into the general marketplace recently, as there has been no major military escalation in the Middle East.

US lawmakers are scrambling to pass a measure to fund the federal government, with the deadline being midnight Friday. Other US economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the NFIB small business index, and real earnings. Several Federal Reserve officials are also slated to speak today.

Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,000.00, while bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00.