Gold prices rebounded to $2,900 after enduring significant losses at the end of February. This recovery comes amidst notable changes in currency values and economic indicators, as the EUR/USD pair climbed to levels not seen since November, settling just below 1.0888. Meanwhile, consumer price inflation showed signs of cooling in February, following a strong start in 2025.
The core index is anticipated to reflect a slight retreat in several categories that surged in January. Economists estimate that the headline Consumer Price Index (CPI) rose by 0.25%, with the core index advancing by 0.27%. These figures suggest a potential easing of inflationary pressures, providing some relief to markets.
In currency movements, the AUD/USD pair weakened to near 0.6305 during the early Asian session on Monday. This decline was influenced by disappointing Chinese economic data released over the weekend, which negatively impacted the China-proxy Australian Dollar. Additionally, concerns about a potential slowdown in the US economy have further affected currency dynamics.
The US Dollar experienced a sell-off, primarily due to lackluster United States data and growing fears that President Donald Trump's tariffs could lead to an economic setback. These developments have sparked uncertainty in financial markets, affecting various currency pairs and commodities.
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