GOLD DROPS FOLLOWING SURGING US CPI, HIGH TREASURY YIELDS
- Gold falls over 1% as February's US CPI report surpasses expectations, boosting Treasury yields.
- Inflation rises to 3.2% YoY, with core CPI slightly above forecasts, influencing XAU/USD’s pullback.
- The surge in US 10-year Treasury yields and a stronger US Dollar Index contribute to Gold's decline.
Gold price plunged late in the North American session on Tuesday in the aftermath of a hotter-than-expected US inflation report that exceeded estimates and prompted a jump in US Treasury bond yields. Then the yellow metal tumbled more than 1%, and the XAU/USD traded at $2,157.00 per troy ounce after hitting a high of $2,184.76.
The US Consumer Price Index in February exceeded an estimated 3.1% YoY as inflation clocked 3.2% and above January’s 3.1%, while monthly data increased from 0.3% to 0.4% as expected. Underlying inflation, as measured by the core CPI, stood at 3.8% YoY, down from 3.9%, but missed the consensus of 3.7%, while monthly readings stood unchanged at 0.4%.
Following the data, US Treasury yields edged up as reflected by the US 10-year benchmark note rate, which gained five basis points to reach 4.151%. The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six other currencies, gained 0.18% to 102.92.
- Gold falls over 1% as February's US CPI report surpasses expectations, boosting Treasury yields.
- Inflation rises to 3.2% YoY, with core CPI slightly above forecasts, influencing XAU/USD’s pullback.
- The surge in US 10-year Treasury yields and a stronger US Dollar Index contribute to Gold's decline.
Gold price plunged late in the North American session on Tuesday in the aftermath of a hotter-than-expected US inflation report that exceeded estimates and prompted a jump in US Treasury bond yields. Then the yellow metal tumbled more than 1%, and the XAU/USD traded at $2,157.00 per troy ounce after hitting a high of $2,184.76.
The US Consumer Price Index in February exceeded an estimated 3.1% YoY as inflation clocked 3.2% and above January’s 3.1%, while monthly data increased from 0.3% to 0.4% as expected. Underlying inflation, as measured by the core CPI, stood at 3.8% YoY, down from 3.9%, but missed the consensus of 3.7%, while monthly readings stood unchanged at 0.4%.
Following the data, US Treasury yields edged up as reflected by the US 10-year benchmark note rate, which gained five basis points to reach 4.151%. The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six other currencies, gained 0.18% to 102.92.
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