Gold Price Forecast: Upside surprise in US inflation data could keep XAU/USD on the back foot – TDS

Economists at TD Securities analyze Gold’s outlook following sticky US inflation report.

XAU/USD could find support fairly quickly

Gold has remained subdued as traders sold into a soft-landing theme amid fears of higher-for-longer rates. The modest upside surprise in today’s US inflation data could further compound these fears and keep the precious metals complex on the back foot. 

However, the yellow metal could find support fairly quickly, with additional important data on the calendar for tomorrow. In this sense, a weaker retail sales number on Thursday could provide an offset to the inflation data and offer a challenge to the soft-landing narrative.