Gold Price Forecast: XAU/USD bulls again turn to bullion after CPI numbers emerge – SocGen

Gold edged higher following Consumer Price Index (CPI) data and is now trading above the $1,800 level, economists at Société Générale report.

Gold rises after November CPI prints

“US inflation data for November were released at the very end of the week, with core CPI printing at 6.0% YoY compared to analysts’ forecast of 6.1%. This was particularly supportive for Gold since it was thought that it would further convince the Fed to slow the pace of tightening during its 13-14 December FOMC meeting.”

“Although lower inflation would typically be bearish for Gold, the bullion has been supported recently by the prospect of the Fed slowing interest rate increases. Because Gold is a non-interest generating asset, a lower peak interest rate is bullish for the bullion.”

“The US Dollar depreciated following the data release, which improved the affordability of the precious metal to foreign investors, further supporting Gold prices.