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XAU/USD extends backslide, markets gear up for Fed rate call

XAU/USD continues decline that started last Friday, sheds $2,000.

Markets are coiling up in preparation for another round of US inflation, Fed rate call.

Fed interest rate forecast ‘dot plot’ to drive market momentum into the midweek.

Spot Gold saw further declines on Monday, slipping back below the $2,000 handle to ease into the $1,980 neighborhood as markets get set for a fresh round of US Consumer Price Index (CPI) inflation figures on Tuesday. Wednesday will follow up with a mid-week showing from the Federal Reserve (Fed) for the US central bank’s last rate call of 2023.

Forex Today: Quiet markets ahead of US CPI and the Fed; Gold extends slide

US CPI inflation is expected to mix on the front end of the curve, with Core CPI (headline inflation less volatile food and energy prices) is expected to jump from 0.2% to 0.3% MoM in November, while the YoY figure is forecast to tick down slightly from 3.2% to 3.1%. Markets have coalesced into a mass of rate cut expectations from the Fed, but inflation continues to print well above the 2% upper bound of the Fed’s Core CPI target range.

Read more: Fxstreet