The Price Of Gold Drops Marginally After U.S. CPI Data Shows That Inflation Slowed Down In February.

After three days of significant drops, Treasury yields and the dollar rose. Gold prices also declined as traders processed the release of the U.S. inflation report, which revealed that price pressure continued to weaken in February.

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Price movement

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Market Forces

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The demand for gold as a safe haven decreased on Tuesday as a result of U.S. authorities' intervention on Sunday to allay concerns about the survival of regional banks.

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According to Raffi Boyadjian, head financial analyst at XM, "Gold was on the backfoot too, challenging the $1,900 per ounce mark as safe haven demand faded, having gained by roughly 6% from last week's lows.

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A traders' evaluation of the U.S. According to the February CPI statistics, inflation moderately decreased last month, as predicted by economists. Inflation slowed down once again in February, when consumer prices increased by 0.4%. Food and energy are excluded from the core inflation rate, which increased sharply by 0.5%. Wall Street economists had predicted a monthly growth of 0.4%.

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The inflation data may give the Federal Reserve room to approve a modest interest rate increase next week as it also assesses the effects of Silicon Valley Bank's demise.

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5 charts demonstrate how the fall of SVB shocked markets around the world.

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The yield just on 2-year Treasury note increased 23 basis points to 4.25% on Tuesday, making it the highest one-day advance since June 2009 in terms of U.S. bond yields. The SVB disaster threw off forecasts for interest rate hikes, causing the 2-year Treasury yield to experience its greatest decline since 1987 on Monday.

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The ICE U.S. Dollar Index, which measures the strength of the dollar against a selection of competitors, was virtually unchanged at 103.59.

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