Gold prices stabilized on Wednesday ahead of the critical U.S. inflation data, which is anticipated to influence the Federal Reserve’s interest rate decisions amid ongoing trade tensions and concerns regarding an economic slowdown.
In spot trading, gold settled at $2,916.69 an ounce as of 03:00 GMT, while U.S. gold futures experienced a marginal increase of 0.1%, reaching $2,922.30.
Market participants are closely monitoring the U.S. Consumer Price Index (CPI) set to be released later in the day. This data will be pivotal for determining the Federal Reserve’s stance on interest rates in the upcoming year.
Should inflationary pressures necessitate sustained high interest rates, gold may lose its appeal as an investment, given its nature as a non-yielding asset.
The tariffs implemented by former President Donald Trump are widely believed to exacerbate inflation and economic uncertainty, contributing to gold reaching a peak of $2,956.15 on February 24.
During a recent meeting with executives from the largest U.S. companies, Trump reiterated support for his tariff policy, despite the market challenges faced by several firms amid waning consumer and investor confidence due to stagnation and inflationary pressures.
In related metal markets, silver prices in spot transactions dipped 0.5% to $32.76 an ounce, while platinum rose 0.4% to $978.60. Conversely, palladium saw a decrease of 0.6%, trading at $940.53.
