Gold price climbed to $1,760 after the US inflation data sparked another surge in precious metals prices. Today’s Commodity Futures Trading Commission (CFTC) data could curb the rally if short positions were reduced, economists at Commerzbank report.

XAUUSD has considerable upside potential once the Fed rate hikes come to an end

“US consumer prices rose much less sharply than expected in October, thereby dampening Fed rate hike expectations, putting pressure on the US Dollar and causing US bond yields to fall noticeably.”

“Yesterday’s price response shows once again that the gold price has considerable upside potential once the Fed rate hikes come to an end.”

“Today’s CFTC data are likely to reveal whether the surge in the gold price was attributable to speculative short covering. If short positions were indeed reduced substantially in the last reporting week, one key price-driving factor would fall away in future. If so, the upswing could run out of steam.”