Gold prices pushed higher as the US Dollar failed to capitalize on even as CPI data showed core inflation unexpectedly accelerated in December. The outcome buoyed Treasury yields while the Fed rate hike outlook steeped but the greenback’s recent inability to find strength in tightening bets continued, with the anti-fiat yellow metal enjoying support by extension.
Meanwhile, cycle-sensitive crude oil prices advanced amid a broad improvement in market-wide risk appetite. Indeed, the WTI benchmark telling tracked the S&P 500upward. US retail sales figures may have accounted for the chipper mood. While December’s figures printed broadly as expected, strong upward revisions of November’s data made for a rosy picture. Indeed, consumer-discretionary shares led the way higher.
Looking ahead, US market closures for the Martin Luther King Jr Day holiday hint at quiet consolidation until participation rebuilds Tuesday. Still, the possibility for stray headline risk to trigger kneejerk volatility from over-the-counter assets including gold warns against complacency, particularly as a number of key political narratives continue to develop in the background.
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