Inflation, banking news are crucial for Gold traders to track

Although the recent shift in the Federal Reserve (Fed) tone and the market’s cautious optimism keeps the Gold buyers hopeful, a jump in the US inflation expectations and an absence of dovish comments from major central banks prod the XAU/USD bulls. As a result, today’s preliminary readings of the Harmonized Index of Consumer Prices (HICP) gauge for Germany and the US fourth quarter (Q4) Core Personal Consumption Expenditure (PCE) details will be important to watch for the Gold traders. It’s worth noting that an increase in price pressure pushes the central banks towards higher rates and the same can weigh on the precious metal.