Gold prices surged by over 1.6% after the release of the U.S. Consumer Price Index (CPI) for August, which was largely in line with expectations. Despite a slightly hotter-than-expected core CPI reading, the market appears to have already priced in a more adverse outcome following a strong Producer Price Index reading earlier in the week. The removal of uncertainty surrounding the inflation data is being cited as the primary catalyst for the rally. [3, 14] This has led to suggestions that the upward price movement was intensified by a short squeeze, as traders who had bet on a price decline were compelled to buy back their positions when the anticipated sell-off post-CPI did not occur. [5]