The gold rose and moved close to a 2-year high. The sentiment were helped by last week higher than expected US inflation and making the gold as a better option to secure the value of money from price pressure.
Another boost for the gold price came from US government ten-year Treasury bond yields rose to a record 4-year high – indicating major selloff on bonds and tend to stimulate the investor to buy gold as a safe-haven investment product.
Pressuring the USD, US economic data released last week were mostly unfavorable. The US’s Consumer Inflation Expectations for the month of January was released at 2.71% from the previous released at 2.82%, US’s Retail Sales YoY growth for the month of January was slowing and grow 3.60% from 5.20% on the month before, US’s Industrial Production MoM for the month of January was decreased by 0.10%, and US’s Manufacturing Production YoY for the month of January was slowing and grow only 1.80% from 2.10%.
FOMC Minutes of Meeting
BThe FOMC will release the Minutes of Meeting from the 30-31 January meeting, which hold the rate at 1.25% - 1.50%. If the Minutes sounds more hawkish about the economy and the possibility of rate hike on the next meeting, the USD will find a support and limit its losses. However if the Fed’s member are showing a cautious stance in the minutes, this will make USD vulnerable to move lower and give support to the gold price.