Gold Surges Above $4,400 as Traders Eye US Inflation Data

Gold prices rose above $4,400 on Wednesday as traders await the US Consumer Price Index (CPI) data release. The precious metal rebounded after closing in negative territory on Tuesday for only the second time in six trading days.

The CPI report is expected to show a slight increase in inflation, with headline CPI rising 0.1% and core CPI increasing 0.2%. However, the annual rates are forecast to ease to 3.4% and 2.5%, respectively.

Rabobank's RaboResearch Global Economics & Markets team cautions that the benign US CPI consensus is unfolding against a far more turbulent geopolitical backdrop.