Gold Prices Hold Steady Ahead of Key U.S. CPI Release

Gold prices are trading steady as markets await the latest U.S. Consumer Price Index (CPI) data, a key inflation measure published by the U.S. government. CPI is closely watched by investors and the Federal Reserve, the U.S. central bank responsible for managing inflation and monetary policy.

Gold often acts as a hedge against inflation and currency debasement. From a money supply perspective, a softer CPI reading would strengthen expectations of future interest rate cuts, potentially weakening the U.S. dollar and supporting gold prices through improved liquidity conditions. On the other hand, higher-than-expected inflation could reinforce tighter monetary policy, limiting money supply expansion and capping upside for gold in the short term. As a result, CPI remains a critical trigger for gold’s next directional move.