GOLD: Bullion Retreats As USD Advances

Gold prices are down 0.4% during APAC trading to $1846.90/oz as the USD has rallied 0.25%. They fell following the US CPI which saw the monthly increase in headline rise and the annual inflation rates higher than expected. But gold bounced back and range traded late in the NY session.

• Bullion remains above its Tuesday low of $1843.36 today but is now below its 50-day simple MA and the Feb 14 low of $1850.50. Near-term support is $1825.50, the January 5 low.
• Fed speakers on Tuesday talked of the need for further rate hikes to rein in inflation but were not of the same view regarding where the terminal rate would be. A hawkish tone to the Fed has been weighing on bullion this month.
• Later today January US retail sales print and a strong outcome of 1.8% m/m is expected but the control group is forecast to rise only 0.3%. There are also US business inventories and IP and UK inflation data. No Fed officials are scheduled to speak.