Gold prices rose yesterday after the release of U.S. economic data that showed inflation could control the path of the FED monetary policy. Spot gold rose up to $1,795.20 per ounce, while U.S. gold futures remained stable at $1,792.60.
Attention is set on the monthly CPI due today. The Fed’s focus is mainly on employment and does not openly express concern over inflation. Head of commodity strategies at TD Securities Bart Melek said it could “be tough for gold to take off” if the dollar continues to remain strong. Gold has always been thought of as protection against inflation and currency debasement.