If you were around early Monday you’ll have seen this on the good price plunge:
- a rough start the week for commodities, with heavy selling in Asian trading before paring some of those gains into the close. Rising coronavirus cases and tighter monetary conditions set the tone.
- strong US jobs report on Friday
- a sharp rise in inflation-adjusted Treasury yield
- lack of liquidity saw prices break below USD1,700/oz before some opportunistic buying helped it rebound
- investors are now positioning for a more hawkish Fed
- Inflation data scheduled for release on Wednesday take on added importance amid the bearish tone in the market
- Any signs of sustained price rise could put further pressure on gold as expectations of a more hawkish Fed strengthen
Bolding is mine … US CPI data coming up mid-week!