Gold price edges higher ahead of CPI data

Gold price is slightly up during the North American session, but the precious metal is still pressured due to high US Treasury bond yields, as well as the stronger US dollar. The US 10-year Treasury bond yield is down by four bps but around YTD highs at 3.92%, while the greenback is pairing earlier losses. The US Dollar Index, a gauge of the buck’s value versus a basket of peers, losses 0.03%, at 112.720 versus the opening reading of 113.080.

Ahead of critical US inflation figures to be released on Thursday, gold traders attempt to get clues on the intentions of the US central bank. Thursday’s data could shed some light regarding the need for further Fed aggressive interest rate hikes.

At the time of writing, the Gold Index, XAU/USD is trading at $1680.95 versus the opening price at $1668 per ounce, registering minimal gains. Market sentiment is deteriorated amidst persistent fears that global central bank tightening would slash corporate earnings while dampening the economic expectations.