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The latest Consumer Price Index report showed inflation running hotter than expected in January, climbing for the month and hitting an annual pace of 3.1 percent. While energy prices moderated, persistent inflation in categories like shelter and food increased concerns over the trajectory.
In reaction, rallied above $51,000, now up 17.47 percent year-to-date as analysts pointed to bullish factors like reclaiming a $1 trillion market cap. Gold prices, meanwhile, entered a holding pattern between $1,980 and $2,000 as markets continued to eye inflation and Federal Reserve policy moves.
January CPI Print Hotter than ExpectedThe Labor Department a 0.3 percent increase in its Consumer Price Index for January as shelter, food and core inflation continued putting upward pressure on prices. Though energy prices fell 0.9 percent on the month, with gasoline contributing to the decline, annual inflation jumped to 3.1 percent. Core CPI, which excludes food and energy costs, held steady at an annual pace of 3.9 percent. Markets had mixed reactions to the latest inflation data, with persistence in key categories like shelter costs adding to concerns that the Federal Reserve may need to continue to cool price growth even as some components show signs of moderation.
Bitcoin Soars, Gold DipsBitcoin’s price has rallied above the $51,000 level over the past day. The cryptocurrency is up 4.35 percent over 24 hours to $51,888.70 as of Wednesday afternoon. Bitcoin’s year-to-date returns now stand at 17.47 percent. Analysts pointed to factors including Bitcoin reclaiming a $1 trillion total market capitalization this week and expectations for continued inflows into , which could push Bitcoin back toward its all-time highs of around $64,000.After last week’s sell-off, gold prices entered a holding pattern between $1,980 and $2,000 an ounce. Spot gold stood at $1,991.89 Wednesday, nearly flat for the day. Technical indicators show gold faces resistance around $1,980 but support around $2,000, suggesting the potential for a rally back toward the $2,040-$2,075 range if prices can break above the near-term resistance level. Analysts said gold continues to take its cues from dollar strength and inflation readings, with expectations for range-bound prices but opportunities for short-term bounces. More By This Author:
