Gold traders not taking any chances yet

Gold has not made any progress yet today, despite a slight drop in US yields and the dollar. That might come as a surprise to some, but it is understandable. The market is still mostly overweight on the metal and has been for a long while now too. The risks looming this week all focus immediately on the US CPI data tomorrow and if that data surprises to the upside (and it could), then it could be the catalyst that forces gold traders to part company with their holdings. Naturally, weaker CPI data could encourage fresh buying too. It is all down to what emerges there. So, ahead of that it seems gold traders are not taking any chances on the CPI data. Gold closed in the US on Friday at $2,024.26. It has traded a range so far today covered by $2,021.91 to $2,026.99. It is currently trading at $2,025.10