Gold prices as a safe-haven asset held steady on Wednesday, helped by tariff uncertainty and a cooler inflation report that kept bets for a US interest rate cut intact.

Spot gold rose 0.1% to $2,917.93 an ounce by 1258 GMT. US gold futures edged up 0.1% to $2,923.80.

Data showed that the US consumer price index rose 0.2% last month after rising 0.5% in January. However, the increase was likely temporary against the backdrop of aggressive import tariffs that are expected to raise the cost of most goods in the coming months.

"Gold has been resilient but stuck in a range in recent weeks; whether gold can move higher on this CPI report will be an important signal," said Tai Wong, an independent metals trader.

"In the medium term, uncertainty will keep gold supported so any sharp dips will be bought." On the trade front, President Donald Trump's additional tariffs on all U.S. steel and aluminum imports took effect on Wednesday, escalating his campaign to reshape global trade in U.S. favors and prompting swift retaliation from Europe.

The Federal Reserve cut interest rates by 100 basis points last year. Financial markets expect the Fed to resume rate cuts in June as the economic outlook worsens, after pausing in January. FEDWATCH

Non-yielding gold thrives in a low-interest environment and is considered a safe haven during periods of economic and geopolitical turmoil.

The U.S. Producer Price Index (PPI) and weekly jobless claims data due on Thursday are the next data sets that investors are watching.

Spot silver rose 0.7% to $33.16 an ounce.

Silver should outperform gold in our base case of a modest recovery in manufacturing activity, although a sharper slowdown in U.S. growth is a key risk, UBS said in a note. (Newsmaker23)

Source: Reuters