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Gold prices remained steady in Asian trading on Wednesday, as investors exercised caution ahead of a key U.S. inflation report. The metal continued to find support from its safe-haven appeal amid ongoing volatility surrounding President Donald Trump’s shifting tariff policies.
Spot gold held at $2,911.17 per ounce, while gold futures expiring in April were unchanged at $2,921.24 an ounce as of 02:32 ET (06:32 GMT).
Investors Await U.S. CPI Data for Fed Rate Signals
Market participants are closely watching the release of the U.S. Consumer Price Index (CPI), which could provide further clarity on the Federal Reserve’s monetary policy stance.
Lower interest rates typically bolster gold prices by reducing the opportunity cost of holding non-yielding assets like gold. However, recent statements from Federal Reserve officials suggest that a near-term rate cut remains unlikely, with policymakers remaining cautious about inflation risks, particularly in the wake of recent trade policy shifts.
The Fed’s next policy meeting is scheduled for March 18-19, where officials will decide on the direction of interest rates.
Trump’s 25% Steel and Aluminum Tariffs Take Effect
Adding to global economic concerns, President Donald Trump’s 25% tariff on all U.S. imports of steel and aluminum officially came into effect on Wednesday. The measure impacts a broad range of products, from industrial machinery to everyday consumer goods such as soda cans.
Prior to the enforcement, Trump had briefly proposed raising tariffs on Canadian steel and aluminum to 50%, citing Ontario’s new trade restrictions. However, after negotiations 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. As a result, the Trump administration reverted to the original 25% tariff instead of implementing the higher rate.
The imposition of these tariffs has intensified concerns over a potential economic slowdown, further supporting gold’s status as a safe-haven asset.
Other Precious Metals & Currency Movements
The U.S. Dollar Index edged up 0.2% in Asian trading but remained near a four-month low reached last week.
Among other precious metals:
- Platinum futures inched up 0.2% to $988.05 per ounce.
- Silver futures gained 0.3% to $33.240 per ounce.
With inflation concerns and trade tensions remaining in focus, gold is likely to remain well-supported in the near term as investors await fresh cues from the Federal Reserve and global economic developments.
