Gold (XAU/USD) makes a U-turn and registers solid gains on Wednesday, sponsored by broad US Dollar weakness, even though the latest inflation data cemented the case for the Federal Reserve (Fed) to hold rates unchanged in January. XAU/USD trades at $4,615, up 0.65%.
Bullion rebounds sharply as broad US Dollar weakness and escalating Iran tensions outweigh firm US inflation data
Risk appetite continues to deteriorate, a reason for traders to rotate to the yellow metal. The Producer Price Index (PPI) report for October in the US showed that producer prices are far from the Fed’s 2% goal, yet traders remain confident that the central bank will cut rates in 2026.
Further data revealed that Retail Sales exceeded estimates, an indication that American households increased spending, mostly on motor vehicles and elsewhere.
Recent news revealed that tensions in Iran are increasing after two…
