Gold prices were flat on Friday, slipping from a two-week peak reached on Thursday as expectations for a more aggressive Fed rate hike following a spike in US consumer prices firmed.The dollar index strengthened after data showed that US consumer prices rose significantly in January, posting the biggest annual gain in 40 years.The St. Louis Fed President said on Thursday that he has moved “dramatically” more hawkish in light of the highest U.S. inflation rate in nearly 40 years and now wants interest rates to be raised by a full percentage point over the next three meetings of the Fed.From a technical standpoint, the precious metal is still trying to break the $1,835 threshold, while the first major support area is at $1,800.Due to relatively high inflation numbers worldwide demand for Gold remains high, with inflation protection being the main argument to be bullish on the asset in the medium-term, especially if central banks won’t live up to interest rate hawkish expectations.
Source: Tickmill
