Gold Price Today: The price of gold moved higher as the US Dollar sold off post US CPI yesterday. The headline CPI number was only marginally higher than expectations, clocking in at 0.4% m/m for September against 0.3% anticipated. The Core CPI print was in line at 0.2% m/m.
The language from the FOMC minutes was more intriguing. If there was any doubt about tapering starting in November or December, they have been dispensed baring a disaster in the interim. This led to Treasury yields going lower and the US Dollar going with it against most assets, including gold.
Energy commodity prices have made record highs in many markets recently. Industrial metals have also seen much higher prices, with the exception or iron ore. Aluminium, copper and steel are trading at multi-year highs.
Gold and silver have been left to their own devices to an extent as they are trading a long way below their highs seen last year. USD weakening appears to be the key culprit in favour of the precious metals.
Looking ahead, the Fed might be the key to gold price movements as the impact on the US Dollar appears to be the XAU driver for now.
The chart below illustrates energy proxied by WTI crude oil and the US Dollar represented by the DXY USD index.