Key moments
- Spot Gold holds steady above $2,900 mark as US CPI data eyed
- US President Trump reverses course on a pledge to increase tariffs on Canadian steel and aluminum to 50%
- Kyiv intends to accept a Washington proposal for a 30-day ceasefire
Spot Gold was mostly flat on Wednesday, as market players awaited the key US CPI inflation data that may provide further clues over the Federal Reserve’s monetary easing path amid economic slowdown concerns.
Annual headline consumer inflation in the US probably eased to 2.9% in February, according to market consensus, from 3% in January – the highest rate since June 2024.
Annual core CPI inflation probably eased to 3.2% in February from 3.3% in January.
In case price pressures continue to persist, and thus, prompt the Federal Reserve to maintain interest rates at higher levels, non-yielding Gold may lose some of its appeal.
US tariff uncertainty and fears of a potential economic slowdown continued to weigh on market sentiment.
Yesterday US President Trump reversed course on a pledge to increase tariffs on Canadian steel and aluminum imports to 50%, hours after declaring the higher duties.
Trump’s pledge to double tariffs came after the Canadian province of Ontario imposed a 25% surcharge on electricity exports to New York state, Michigan and Minnesota.
Later, the US President backed off from the planned tariff raise after Ontario Premier Doug Ford said he had agreed to suspend the surcharge and meet with US Commerce Secretary Howard Lutnick in Washington this week.
Then, the White House confirmed that only the previously planned 25% tariff on imports of steel and aluminum from Canada and all other countries would take effect at midnight on Wednesday.
“I expect gold to remain a favored asset whilst investors are concerned about tariff wars and growth slowdowns. So, the bias for gold remains to the upside due to ongoing tariff dramas,” KCM Trade chief market analyst Tim Waterer was quoted as saying by Reuters.
Meanwhile, on the geopolitical front, the United States agreed to resume military aid and intelligence sharing with Ukraine, as Kyiv announced it intended to accept a Washington proposal for a 30-day ceasefire in its confrontation with Russia.
Spot Gold was last down 0.02% on the day to trade at $2,915.25 per troy ounce.
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