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US Spot gold moves above US$1900 to retrace recent losses

Gold price holds ground above $1,900, snapping a losing streak.CME FedWatch Tool indicates the interest rates to remain within the range of 5.25% to 5.50% in the Fed's September meeting.

Fed dovish sentiment is weakening the US$.Gold price attempts to snap a two-day losing streak, edging higher around $1,910 per troy ounce during the Asian session on Thursday after Consumer Price Index (CPI) data from the United States (US).

US Consumer Price Index (CPI) (YoY) exceeded expectations, rising to 3.7% from the previous rate of 3.2%, surpassing the market's anticipated 3.6% for August. Furthermore, the monthly core CPI showed improvement, increasing to 0.3% from the prior 0.2% for the same month. This increase was unexpected, as market expectations had been for it to remain unchanged. However, the annual core inflation rate aligned with expectations, holding steady at 4.3%, consistent with the previous figure of 4.7%.

The data suggests that while overall inflation may be moderating, the Core Consumer Price Index (CPI) remains relatively stable. This information initially led to a rise in US Treasury yields, but those gains were later retraced. The market sentiment seemed to improve with the belief that the US Federal Reserve (Fed) will maintain a dovish stance in its September meeting.

This dovish sentiment has provided support for the prices of Gold, as investors seek alternative stores of value. This has contributed to the weakening of the US Dollar (USD).

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