Gold prices rose in Asian trading on Thursday as soft inflation print in the U.S. supported interest rate cut bets, while President Donald Trump's fresh tariff threats kept bullion's safe-haven appeal intact.
Spot Gold rose 0.4% to $2,945.18 per ounce, while Gold Futures expiring in April gained 0.2% to $2,953.62 an ounce by 00:56 ET (04:56 GMT).
Gold rises as cooling inflation data backs rate-cut bets
The U.S. Consumer Price Index (CPI) increased by 0.2% in February, leading to an annual rise of 2.8%, slightly below the anticipated 2.9% and down from January's 3.0% gain.
This moderation in inflation has reinforced expectations that the Federal Reserve may consider cutting interest rates in the near future.
Markets are currently pricing in three rate cuts this year, with the first cut of 2025 in June, according to the Fedwatch tool.
The prospect of lower interest rates typically diminishes the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.
The Fed is scheduled to meet on March 18-19 to decide on interest rates.
Trade war deepens as Trump threatens more tariffs
Ongoing uncertainties surrounding U.S. trade policies have further bolstered gold's appeal as a safe-haven asset.
Trump on Wednesday threatened additional tariffs on European Union (EU) goods if the EU proceeded with its planned counter-tariffs on U.S. products.
This escalation came shortly after the U.S. implemented a 25% tariff on steel and aluminum imports, a move that has strained relations with key trading partners.
Source: Investing.com
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...