Gold price is holding its own at $2,020-2,030 of the US inflation data. Economists at Commerzbank expect the yellow metal to remain elevated. 

No scope for the Fed to implement rate cuts this year

“According to the Fed Fund Futures, the key rate expected at the end of the year is approx. 4.4%. It is doubtful whether the inflation figures will be able to shake this view.”

“We expect that the headline rate will have remained at 5% in April and that the core rate will have fallen slightly to 5.5%. This would still leave inflation well above the US Fed’s target level. This confirms our view that there is no scope for the Fed to implement rate cuts this year. It will probably take some time before the market likewise adopts this view, however. Gold is therefore likely to remain above the $2,000 mark.”