Gold goes up ahead of US inflation data
On Tuesday, gold futures edged up during European trade, thus contributing to moderate overnight revenues as market participants looked ahead to major US inflation data due later this day in order to assess whether the number one economy is steady enough to cope with further rate surges this year.
The Commerce Department is going to disclose April’s inflation figures a bit later. Financial analysts expect consumer prices to ascend approximately 0,3%, while core inflation is supposed to soar about 0,2%.
By the way, on a yearly base, core CPI is foreseen to edge up 2.1%. The Fed considers core prices to be a good indicator of longer-term inflationary pressure. It’s because they simply exclude the volatile food as well as energy categories. The major bank normally tries to aim for 2% core inflation or even less.
Obviously, rising inflation might appear to be a persuasive catalyst to push the Fed toward increasing interest rates.
In addition to inflation, other long-awaited US reports will include data on housing starts as well as building permits.