Gold price is attempting a minor comeback while within a familiar range below the $1,800 mark ahead of the all-important United States Consumer Price Index (CPI) data. FXStreet’s Dhwani Mehta analyzes how the yellow metal could react to inflation figures.

US CPI could impact Federal Reserve’s outcome

“Any upside surprise in the Core CPI data could prompt the Federal Reserve policymakers to revise higher their forecasts for the terminal rate, eventually impacting the US central bank’s Dot Plot chart, which will be announced on Wednesday.”

“Should the US Core Consumer Price Index beat estimates, it could trigger a US Dollar rally alongside the US Treasury bond yields, weighing negatively on the non-interest-bearing Gold price.”

See – US CPI Preview: Forecasts from 10 major banks, inflation appears to have peaked