XAUUSD - Support as US CPI shapes view ahead of Fed and ECBGold prices slightly increased today as the market anticipates the possible outcomes of the US CPI and PPI before the Fed's FOMC meeting tomorrow. Meanwhile, the US 10-year real interest rate continued to inch up slightly to above 1.5% with stable bond yields this week ahead of the significant monetary policy meeting and inflation data.
The real yield is the nominal yield minus the market-based inflation rate, originating from Treasury Inflation-Protected Securities (TIPS) for the same term. If today's CPI data differs significantly from expectations, the real yield may fluctuate, affecting gold prices. In February, gold was below $1,850/oz when the real 10-year yield was at this level.
