Gold price rallies amid high US yields following US PPI

• Gold gains 1% on Friday, set to end the week with 0.20% gains.
• US PPI data was slightly above expectations, suggesting inflation is down but stalling above target, while UoM Consumer Sentiment highlights concerns over rising living costs.
• Despite higher US Treasury yields, with the 10-year note rising to 4.081%, Bullion prices remain supported as the Fed is expected to cut rates later this year.

Gold rallied over 1% on Friday, with the yellow metal set to end the week with modest gains of 0.20% after inflation data revealed on Friday and the Consumer Price Index (CPI) report on Thursday capped the Greenback’s advance. At the time of writing, XAU/USD trades at $2,658.

Mixed economic data underpinned the prices of the yellow metal. The US Bureau of Labor Statistics (BLS) revealed that prices paid by producers came near the consensus, indicating that inflation is trending down but above expectations. At the same time, the University of Michigan (UoM) Consumer Sentiment data for October showed a deterioration among Americans due to higher living costs.