Aside from inflation data this week that could affect the market, bullish sentiment towards gold continues to grow as central banks continue to buy gold.

Central banks have recently diversified their holdings by increasing their gold bullion reserves as geopolitical tensions continue to rise around the world.

Russia and Ukraine are strengthening their positions, while China has launched military exercises in Taiwan. The Chinese military sent dozens of planes across the Taiwan Strait median line. This happened hours after China announced a three-day drills around Taiwan in response to a meeting between the island's President, Tsai Ing-wen, and the speaker of the U.S. House of Representatives.

Also, according to the press, North Korea continues to build up its nuclear capabilities.

So while today's CPI inflation report is very important, it is just one component that forms the current bullish sentiment for gold in the market. If today's report comes out according to forecasts, at 5.2%, it will certainly affect the Federal Reserve's upcoming decision to suspend rate hikes earlier, which will cause more bullish sentiment for gold.