Gold price dropped yesterday to $1,850, its lowest level since early January. Soft United States Consumer Price Index could scale back hawkish Federal Reserve bets, allowing the yellow metal to rise, strategists at Commerzbank report.

All eyes on the United States Consumer Price Index

“The US inflation figures that are due to be published today could result in some price movement.” 

“Like our economists, the market expects the inflation rate in January to have fallen to 6.2%. If so, this would constitute the lowest increase in the CPI since October 2021. If the inflation rate turns out to be even lower, the market is likely to scale back its interest rate expectations again somewhat, allowing Gold to rise.”