The precious yellow metal prices jumped almost $35 an ounce, or nearly +2%, as the US Dollar Index (DXY), which measures the greenback strength against its six major rivals, retreats from its near one-year highs and settles around the 94.00 handle.
Fresh economic data Wednesday kept inflation concerns in focus after the U.S. Consumer-Price Index showed U.S. inflation accelerated slightly in September, rising a seasonally adjusted 0.4% from the previous month and at a 5.4% annual rate, according to the U.S. Labor Department.
Economists had forecast a 0.3% rise from August and a 5.3% annual rate.
Excluding energy and food, the core CPI rose 0.2% month over month and 4% over the last 12 months, against respective estimates for 0.3% and 4%.
Later on, the Minutes were released from the Wednesday U.S. Federal Open Market Committee’s (FOMC) September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.
U.S. Fed officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by the middle of 2022.
Based on the technical assessment, the bulls now have the task of clearing the $1,800 handle to initiate further bullish activity.
This, in terms, may weigh on the US dollar (US DXY) and push the index lower to the region of 93.40-60 area.
Conversely, if spot gold closes under $1,776-77, then this is expected to reinstate the negative sentiment to the bearish trigger level at $1,748.