Gold jumps with US inflation data

Gold hit a fresh multi-month high of $1,868.54 an ounce, its highest since last June. Gold surged on the back of higher-than-anticipated US inflation data encouraging speculations the U. S. Fe will have no choice but to hike rates sooner.

The XAU/USD Index retreated from the mentioned high on the broad dollar’s demand, but retains most of its intraday gains and currently trades in the 1,850 price zone.

The U. S. Bureau of Labor Statistics reported that the U. S. Consumer Price Index surged to 6.2% YoY in October from 5.4% in September, while core inflation in the same period jumped to 4.6% from 4.0%.

US Treasury yields initially hesitate, but finally broke higher, with that on the 10-year Treasury note adding 8bps to currently stand at 1.52%.

On the other hand, Wall Street trades in the red territory, although at this point, losses are moderated.