The outlook for gold remains uncertain as global investors prepare for important US inflation data later this week. The upcoming Consumer Price Index report could influence expectations regarding the Federal Reserve’s next interest-rate decision.
Gold has recently witnessed profit booking after a strong rally, while changing expectations surrounding US monetary policy have added to price volatility. Higher interest rates could put additional pressure on bullion, while softer inflation data may provide some support.
Apart from US economic data, crude oil prices and developments in the Middle East will also remain important. Geopolitical tensions can increase safe-haven demand, making the bullion market highly sensitive to global developments.
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