Gold Rises on Geopolitical Risk and US Inflation Data

The price of gold has risen as traders become cautious ahead of the US Consumer Price Index (CPI) data release, which is expected to show a continued slowdown in inflation. This caution has pushed investors towards safe-haven assets like gold, despite ongoing shipping delays in the Strait of Hormuz.

The Strait of Hormuz is a critical waterway for global oil and gas shipments, and recent disruptions have raised concerns about supply chain stability and added geopolitical risk. This increased uncertainty often supports safe-haven assets like gold.

Market participants are also awaiting the latest US CPI report, scheduled for release later today. A hotter-than-expected reading might reduce the likelihood of near-term rate cuts, which typically pressures gold prices. Conversely, a softer print could boost the metal's appeal as a hedge against inflation and currency depreciation.