Gold Price Forecast: XAU/USD could come under further pressure – ANZ

Gold fell below $2,000 after US inflation came in stronger than expected. Strategists at ANZ Bank analyze the yellow metal’s outlook.

US Treasury yields and the USD spiked after strong CPI print

Core CPI rose 0.4% MoM in January and diminished hopes of an early rate cut. 

Gold came under immediate pressure as US Treasury yields and the USD spiked after the print.

The precious metal has held above the key psychological level of $2,000 since mid-December on the hope the US central bank would have to lower borrowing costs quickly. With that now looking highly unlikely, prices could come under further pressure if other economic data remains strong.