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Gold could do with a lower US CPI report and here is what is expected

At 1.30pm GMT today the US will release its latest monthly CPI (Consumer Price Index), coving the month of November last. The markets expect this to be a pretty benign report. The consensus on that is for headline CPI to have not grown at all last month and remain static, or perhaps slightly lower on an annualised basis. The previous reading was showing prices rising by 3.2% on a non-seasonally adjusted basis. The core annualised rate stood at 4% in October and is forecast to remain the same in November. Anything markedly outside of those forecast readings is likely to evoke a reaction. Gold has been pressing a little higher since earlier this morning, as the USD/JPY edges lower with US treasury yields. Ideally, it could do with a lower than forecast CPI reading to add further downside pressure on those US yields and push the metal higher. If the opposite applies, then Gold could come under pressure once more. It has just now hit a session high at $1,989.56. It is currently trading at $1,987.10

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