Gold slumps and braces around $2,150.00 as US inflation reaccelerates

• Gold retreats from the $2,180 mark, reacting to hot US inflation data and Fed’s cautious stance on policy easing.
• Rise in US Treasury yields post-PPI data release dampens XAU/USD’s appeal despite risk-off market sentiment.
• Gold remains subdued as Treasury yields inch higher and the US Dollar strengthens.

Gold spot retreated from around the $2,180 area on Friday, printing back-to-back negative sessions as market players’ hope for the beginning of the US Federal Reserve’s easing cycle has been delayed due to strong US economic data. Hotter-than-expected inflation figures justify Fed Chair Jerome Powell’s remarks to be patient and stick to the current monetary policy stance until the disinflation process evolves. The XAU/USD trades at $2,157.66, down 0.20%.

Wall Street is set to finish Friday’s session on the back foot, reflecting a risk-off mood. Although the Gold price usually capitalizes on it, the rise of US Treasury yields after Thursday’s Producer Price Index (PPI) data kept XAU/USD offered in the European session and toward the end of the trading day.