Gold prices slightly increased today as the market anticipates the possible outcomes of the US CPI and PPI before the Fed's FOMC meeting tomorrow. Meanwhile, the US 10-year real interest rate continued to inch up slightly to above 1.5% with stable bond yields this week ahead of the significant monetary policy meeting and inflation data.
The real yield is the nominal yield minus the market-based inflation rate, originating from Treasury Inflation-Protected Securities (TIPS) for the same term. If today's CPI data differs significantly from expectations, the real yield may fluctuate, affecting gold prices. In February, gold was below $1,850/oz when the real 10-year yield was at this level.