Economy News _ Follow-up
This Wednesday, gold prices demonstrated stability as investors awaited critical inflation data from the United States, which could influence the Federal Reserve’s interest rate decisions amidst ongoing trade tensions and concerns regarding economic deceleration.
As of 03:00 GMT, gold was trading at $2,916.69 an ounce in immediate transactions, while U.S. gold futures experienced a slight uptick of 0.1 percent, reaching $2,922.30.
Market participants are keenly anticipating the release of the U.S. Consumer Price Index later today, which will be pivotal in evaluating the Federal Reserve’s stance on interest rates for the upcoming year.
Should inflationary pressures compel the Fed to maintain elevated interest rates, the allure of gold could diminish as it is typically viewed as a non-yielding asset.
The tariffs enacted by former President Donald Trump are anticipated to exacerbate inflationary pressures and economic uncertainty, contributing to gold reaching a peak price of $2,956.15 on February 24.
During a meeting with executives from major U.S. corporations on Tuesday, Trump defended his tariff strategies, amidst a backdrop of declining market valuations for many firms and wavering consumer and investor confidence due to stagnation and inflationary trends.
In other precious metals, silver experienced a decline of 0.5 percent, settling at $32.76 per ounce, while platinum increased by 0.4 percent to $978.60. Palladium noted a decrease of 0.6 percent, landing at $940.53.
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