Gold edges higher despite hotter US inflation, Trump–Xi summit in focus
Finance Gold edges higher despite hotter US inflation, Trump–Xi summit in focus Gold price (XAU/USD) trades with mild gains near $4,720 during the early Asian session on Wednesday. However, the potential upside for the precious metal might be limited due to hotter-than-expected US inflation and shifting geopolitical tensions. Traders will take more cues from the US April Producer Price Index (PPI) report, which is due later on Wednesday. Data released by the Bureau of Labor Statistics on Tuesday showed that the US Consumer Price Index (CPI) climbed 3.8% YoY in April, compared to 3.3% in March. This figure came in hotter than the expectation of 3.7% and registered the highest since May 2023. On a monthly basis, the headline CPI rose 0.6% in April versus 0.9% prior, matching analysts estimate. Meanwhile, the core CPI, which excludes volatile food and energy prices, rose 0.4% and 2.8% on a monthly and yearly basis, respectively. Following the hot US inflation data, traders raised the odds for a Federal Reserve (Fed) rate hike by the end of the year to about 30%, according to the CME FedWatch tool. This, in turn, could weigh on the yellow metal. Its worth noting that Gold is often used amid geopolitical uncertainty but