Update: Gold price is in an upside consolidative phase just below the $1900 mark in Friday’s Asian trading, as the bulls take a breather before the next leg higher.
Further, news that US bipartisan Senators agreed over President Joe Biden’s infrastructure spending plan also underpins gold.
The upside US CPI print may trigger calls to challenge the Fed on taper and rate hike pricing.
Also contributing to the yellow metal’s upside could be the ECB’s refrain upward revision to the inflation and growth forecasts as well as firming fears of the Fed’s tapering, backed by a strong beat of inflation.
Given the start of the Group of Seven meeting, coupled with the recent positive chatters over the US-China ties and vaccine donations, the market sentiment is likely to improve, putting a bid under the gold.
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