Gold retreats on US Treasury auction

Gold is now some steps back in the hands of the bears as traders await the key US CPI data. Gold is currently under pressure following, dropping at the turn of the past hour after a spike to the day’s highs, trapping breakout traders long when the US treasury notes sold today at 4.140% compared to 4.106% in the moments before the auction in the WI market. Since the sale, US yields have surged, supporting the US dollar and weighing heavily on gold.

Gold is currently trading at $1,702.46, down some 0.46% after falling from a high on the day of $1,722.34 and is taking on the London of $1,703.16. Meanwhile, gold price has given something to both the bulls and the bears on the day as the following analysis will illustrate.

Looking ahead, all eyes will be on the US inflation data in Thursday’s US Consumer Price Index. Investors will be looking for clues in the data to see if it can spur the Fed to continue to increase interest rates well into next year. The data could be a good litmus test to gauge whether investors are about to turn their backs on the greenback once and for all despite the Fed’s Chair, Jerome Powell, recent pushback against the slower tightening sentiment.