Bengaluru — Gold eased on Wednesday as the dollar ticked up, while investors awaited US inflation data to gauge the Federal Reserve’s rate cut path amid trade tension and economic slowdown fears and market focused on news of a potential Ukraine-Russia ceasefire.
Spot gold fell 0.2% to $2,908.93/oz by 7.20am GMT, while US gold futures lost 0.2% to $2,908.93.
The dollar index firmed slightly, making gold more expensive for overseas buyers.
“Gold is operating in ‘consolidation mode’ ahead of the next batch of US inflation data,” KCM Trade chief market analyst Tim Waterer said.
Investors are awaiting the US consumer price index (CPI) data at 12.30pm GMT to analyse the Fed’s interest rate stance this year.
If rising price pressures force the Fed to keep interest rates higher, non-yielding gold may lose its allure.
US President Donald Trump’s erratic tariffs are widely expected to stoke inflation and economic uncertainty and had prompted gold to reach a record high of $2,956.15 on February 24.
“I expect gold to remain a favoured asset while investors are concerned about tariff wars and growth slowdowns. So, the bias for gold remains to the upside due to ongoing tariff dramas,” Waterer said.
Trump defended his tariff policies on Tuesday as he met the CEOs of the US’s biggest companies, including many whose market value has dipped in recent days as recession and inflation fears soured consumer and investor sentiment.
The US president reversed course on a pledge to double tariffs on steel and aluminium from Canada to 50%, hours after announcing the higher tariffs on Tuesday.
Meanwhile, the US agreed to resume military aid and intelligence sharing with Ukraine after Kyiv said it would accept a US proposal for a 30-day ceasefire in its conflict with Russia.
Spot silver shed 0.7% to $32.70/oz, platinum rose 0.7% to $981.29 and palladium slipped 0.8% to $938.00.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.