Gold price (XAU/USD) has shifted its auction above the crucial resistance of $1,960.00 ahead of the release of the United States Consumer Price Index (CPI) data, which will release at 12:30 GMT. The precious metal is expected to show volatile moves as investors are keenly awaiting for the US inflation numbers to deduce cues about Federal Reserve’s (Fed) interest rate policy.

S&P500 futures are holding gains added from the Asian session as the odds of a neutral interest rate decision by the Fed are extremely solid. Market sentiment is quite upbeat and the appeal of risk-sensitive assets is stronger.

The US Dollar Index (DXY) is looking vulnerable near its two-week low around 103.20 as the market participants are anticipating that the energy component will keep significant pressure on the US inflation.

Analysts at NBF expects the energy component may have had a negative impact on the headline index as prices likely fell in both the gasoline and natural gas segments. Expected gains for shelter could still result in a 0.2% monthly increase in headline prices. If we’re right, the annual rate should come down from 4.9% to a two-year low of 4.1%. The core index, meanwhile, could have advanced 0.3% on a monthly basis, something which would translate into a 5.1% annual gain.

The pressure of higher chances for a neutral Fed policy is visible on US Treasury yields. The return delivered on 10-year US Treasury bonds has dropped to near 3.72%.