Gold Prices Stuck at US$5,200, Market Focus Shifts to US CPI
Gold prices tended to stabilize in the range of US$5,190 to near US$5,200 per troy ounce in Asian trading on Wednesday. This movement occurred after market volatility due to the Middle East conflict, but began to ease after signs emerged that tensions between the US and Iran had the potential to not escalate.
US President Donald Trump said the US military operation in Iran would end soon, although he did not provide a clear timetable. This statement contributed to pressure on oil prices and eased some inflation concerns, thus helping gold hold its ground. However, the market remained cautious as Iran warned it could disrupt regional oil exports if US and Israeli attacks continued. On the other hand, Trump also emphasized that the US would respond strongly if oil flows through the Strait of Hormuz were disrupted.
For the gold market, this situation creates a tug-of-war of sentiment. On the one hand, easing oil prices reduces inflationary pressures, which could help maintain market stability. However, on the other hand, if the conflict escalates or the war drags on for a longer period, demand for safe-haven assets like gold could potentially increase again.
The market's next major focus will be on US inflation data, or the Consumer Price Index (CPI) for February, due to be released on Wednesday. The headline CPI is expected to rise 2.4% year-on-year, while core inflation is expected to remain at 2.5%. If the results are higher than expected, the US dollar could strengthen, putting pressure on gold prices in the short term. Conversely, if inflation is more subdued, gold has the potential to gain room to strengthen. (asd)
Source: Newsmaker.id
