Key moments
- Spot Gold holds near highs last seen on February 25th
- Cooler US CPI inflation adds to case for future rate cuts
- Gold may test immediate resistance at $3,000 – analyst
Spot Gold traded in proximity to a two-week high on Thursday amid continuing tariff uncertainty, while US inflation eased more than expected last month, reinforcing the case for future rate cuts by the Federal Reserve.
The prospect of lower interest rates tends to support non-yielding Gold.
Annual headline consumer inflation in the US eased to 2.8% in February from 3% in January. And, annual core CPI inflation eased to 3.1% in February, or the lowest level since April 2021, from 3.3% in January.
“The CPI data was encouraging but I suspect that the tariff increase has yet to be picked up in the inflation data,” Marex analyst Edward Meir was quoted as saying by Reuters.
The latest data will probably give the Federal Reserve some room to leave interest rates on hold next week and to monitor the impact of the Trump administration’s trade policy on economy.
US President Trump’s aggressive tariffs on imports are likely to increase the cost of most goods in the upcoming months.
Trump’s unpredictable tariff policies have led to retaliatory measures from US trading partners, while intensifying a global trade war. The European Union said it would impose counter-tariffs on $28.39 billion worth of US goods from April.
Spot Gold was last down 0.02% on the day to trade at $2,934.30 per troy ounce. It earlier touched $2,947.19 per troy ounce – its highest price level since February 25th.
According to RHB Retail Research’s Joseph Chai, the renewed bullish momentum for Gold may send the metal up for a test of immediate resistance at $3,000, as gains may be extended towards the next resistance level at $3,100 per troy ounce.
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