Gold prices held steady in Asian trading on Wednesday as investors were cautious ahead of a crucial inflation report, while safe-haven appeal kept the yellow metal supported amid fluctuating President Donald Trump’s tariff decisions.
Spot Gold was unchanged at $2,911.17 per ounce, while Gold Futures expiring in April were muted at $2,921.24 an ounce by 02:32 ET (06:32 GMT).
Investors await US CPI for Fed rate cues
Investors awaited the release of U.S. Consumer Price Index (CPI) data, which could provide insights into the Federal Reserve’s future interest rate decisions.
Lower interest rates decrease the opportunity cost of holding non-yielding assets like gold, often leading to an increase in gold demand and prices.
Fed officials have indicated that a near-term rate cut was unlikely, emphasizing vigilance over inflation risks, particularly in light of recent tariff policies.
The Fed is scheduled to meet on March 18-19 to decide on interest rates.
Trump’s 25% steel and aluminum tariffs take effect
President Donald Trump’s 25% tariff on all U.S. imports of steel and aluminum came into effect on Wednesday, intensifying global trade tensions.
This measure affects a broad range of products, from industrial machinery components to everyday items like soda cans.
Prior to the enforcement, Trump briefly proposed increasing tariffs on Canadian steel and aluminum imports to 50%. This escalation was in reaction to Ontario’s new trade restrictions.
However, after discussions between Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick, Ontario agreed to suspend its 25% surcharge on electricity exports to the U.S.
Consequently, the Trump administration retracted the proposed 50% tariff increase, maintaining the existing 25% rate.
The implementation of these tariffs has sparked concerns about a potential economic slowdown, supporting gold prices due to its safe-haven appeal
The US Dollar Index inched 0.2% higher in Asia hours, but remained near a four-month touched last week.
Other precious metals were largely tepid. Platinum Futures inched 0.2% higher to $988.05 an ounce, while Silver Futures gained 0.3% to $33.240 an ounce.
Copper rises on Trump’s tariff decision reversal, China stimulus hopes
Copper prices rose on Wednesday as Trump rolled back from his move of doubling tariffs on U.S. imports of steel and aluminum.
The red metal was also supported by expectations of economic stimulus from China as the National People’s Congress concluded its annual session a day earlier.
Benchmark Copper Futures on the London Metal Exchange rose 0.7% to $9,722.80 a ton, while Copper Futures expiring in April gained 0.1% to $4.7995 a pound.
