[MARKET ANALYSIS] Spot gold is a little lower awaiting US CPI

• Spot gold is a little lower this morning, taking a breather following the strength seen in the prior session, where the yellow metal made fresh ATHs beyond the USD 4.6k/oz mark. Slight pressure today without a clear driver; potentially profit-taking ahead of US CPI.
• Price action in Europe has been sideways, and within a USD 4,573.87-4,608.13/oz range. Most recently, XAU has attempted to move back above the USD 4.6k/oz once again. A bit of divergence between gold and silver this morning, with the latter posting modest gains and currently holding at the upper end of the day's range, last at USD 85.76/oz.
• Citi said its 3-month price targets for gold and silver are now USD 5000/oz and USD 100/oz, respectively. Analysts highlight the renewed uncertainty surrounding Fed independence after the recent Chair Powell investigation.
• Base metals are mixed after choppy trade overnight. 3M LME Copper currently trades within a USD 13,034-13,232/t range. Desks have highlighted that there have been growing fears amongst traders that copper may sharply pull back if demand for the metal slows in 2026, particularly if China curbs spending.

Spot gold is currently under slight pressure as traders likely engage in profit-taking ahead of the US CPI data release. The metal recently reached new all-time highs above USD 4.6k/oz, and while it's showing some consolidation, the market is watching for how the upcoming inflation figures will influence gold’s trajectory, especially amid concerns regarding the Federal Reserve's independence.