Gold prices climbed in Asian trading on Thursday, driven by softer U.S. inflation data that reinforced expectations of Federal Reserve rate cuts. Spot gold rose 0.4% to $2,945.18 per ounce, while April gold futures gained 0.2% to $2,953.62 an ounce.
The U.S. Consumer Price Index (CPI) increased by 0.2% in February, bringing the annual inflation rate to 2.8%, below the expected 2.9% and down from January’s 3.0%. This cooling inflation strengthened market expectations for three rate cuts in 2025, with the first anticipated in June. Lower interest rates typically boost gold’s appeal by reducing the opportunity cost of holding non-yielding assets. Investors are closely watching the Federal Reserve’s upcoming March 18-19 meeting for further guidance.
Gold’s safe-haven demand also increased as former U.S. President Donald Trump threatened fresh tariffs on EU goods in response to planned counter-tariffs. This followed the U.S.’s 25% tariff on steel and aluminum, escalating trade tensions. Canada responded with retaliatory tariffs on $21 billion worth of U.S. imports. The U.S. Dollar Index remained near a four-month low, adding to gold’s attractiveness.
Other precious metals struggled, with platinum futures down 0.7% to $990.10 an ounce and silver futures dipping 0.4% to $33.593 an ounce. Meanwhile, copper prices fell after Trump hinted at adding the red metal to trade protections, with April copper futures slipping 0.2% to $4.8340 a pound.
Amid inflation concerns and rising trade tensions, gold remains a key asset for investors seeking stability, with market focus shifting to the Fed’s upcoming policy decision.


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