From Investing.com.: 2025-02-13 02:19:00

Gold prices rose by 0.18% despite higher US inflation data, indicating a possible slowdown in rate cuts by the Federal Reserve. The US consumer price index (CPI) climbed 0.5% last month, exceeding market expectations and causing a drop in XAU/USD. Safe-haven demand remains strong due to trade war fears, with gold closing above $2,900. While inflation pressures gold, the overall trend remains positive. Investors continue to buy the dips in XAU/USD, with a focus on the US Producer Price Index report later today.

The euro strengthened by 0.21% against the USD, fueled by comments from Bundesbank President Joachim Nagel and despite higher US CPI figures. January’s inflation spike is seen as an anomaly, likely not signaling a larger trend. The US Dollar Index weakened, supporting other major currencies like the euro. Today’s key events include the US PPI report and eurozone Industrial Production data. The euro may face bearish pressure if US trade tariffs against the eurozone are implemented.

The Canadian dollar decreased by 0.13% against the USD as trade war worries and political rhetoric weighed on the currency. President Trump’s comments about making Canada the 51st state and threats of tariffs impact USD/CAD. The Bank of Canada expresses concern over the economic impact of a trade war, hinting at potential rate cuts. The focus today is on the US PPI release, which may provide temporary relief for USD/CAD but is unlikely to reverse the bearish trend.



Read more at Investing.com.: Gold Price Holds Strong Despite Inflation Surge and Fed Rate Concerns