Gold (XAU/USD) prices were flat at $2,915 at the time of writing on Wednesday (3/12) ahead of the release of the US Consumer Price Index (CPI) for February. Market consensus is for a slowdown in all inflation measures, both monthly and yearly. However, many analysts and economists have commented that the current US tariff approach will be inflationary for the US, which could be reflected in the numbers.

Meanwhile, traders remain cautious about tariffs after Chinese Foreign Minister Wang Yi commented that if the US wants to hit China with its steel and aluminium tariffs. Meanwhile, Europe has committed to implementing retaliatory measures by April 13. On the geopolitical front, a US-brokered ceasefire deal in Ukraine has been submitted to Russia for consideration.

Daily Market Movers: CPI to Drive Fed Bets

China consumer stocks rose as the country's annual political meeting ended with support for domestic demand. Hong Kong jewellers led the gains, supported by safe-haven demand for Gold proxies, Bloomberg reported.

Wall Street is growing increasingly nervous as investors grow increasingly nervous about uncertain tariff policy, high inflation and the unknown pace of the Federal Reserve's interest rate easing. Market forecasters at banks including JPMorgan Chase & Co. and RBC Capital Markets have tempered their optimistic calls for 2025 as Trump's tariffs stoke concerns about slowing economic growth, Bloomberg reported.

The CME Fedwatch Tool sees a 97.0% chance of no rate change at the Fed's next meeting on March 19. The odds of a rate cut at the May 7 meeting are currently at 39.5%. (Newsmaker23)

Source: FXstreet