Bullion Higher On Softer US Inflation Print, Watch Tonight’s FOMC

Gold prices are trading sideways today after rising 2% following the softer-than-expected US CPI data for November, which pushed the dollar and UST yields lower. Prices reached a high of $1824.50, the most elevated since late June. Bullion is currently around $1811.80/oz. DXY is up only 0.1%.

• Overnight gold cleared key resistance of $1807.90, the August 10 high, which has now opened up $1833, June 29 high, as the next level to watch. Any dovish tone from the FOMC tonight could push bullion the 1.2% to that mark.
• Overnight the FOMC decision is announced and analysts expect a smaller 50bp hike.