Commodities
Gold Price Surges on Stagflation Fears Ahead of US CPI Data Release
Gold's price has regained its upward momentum, reaching $4,398.04 as of the Asian trading session on Wednesday.
The metal is expected to continue its rally if the US Consumer Price Index (CPI) data shows a benign inflation rate, which would reduce expectations of a Federal Reserve interest rate hike in September.
However, a stronger-than-expected core CPI reading could boost bets on a September Fed rate hike, potentially weakening Gold's price due to increased US Dollar and Treasury bond yields.
According to TD Securities, the precious metal is maintaining its bid, with recent price action hinting at a growing stagflationary theme in the gold market.