Gold Steadies Near Record as US Data Supports Fed Rate-Cut Hopes
Gold held a rally that put it back near a record, after a cooler-than-expected US inflation print supported the case for further Federal Reserve monetary easing this year, while an escalating global trade war stoked haven buying.
Bullion traded near $2,938 an ounce, less than $20 from its all-time high reached last month. Data showed consumer prices rose at the slowest pace in four months in February. Traders are fully pricing in another quarter-point interest-rate cut in June, with about 70 basis points of easing seen for all of 2025. Lower borrowing costs tend to benefit gold, as it doesn’t pay interest.
Any relief for embattled traders from the data may have been short-lived amid expectations that Donald Trump’s tariff agenda will drive up prices for many goods. The US president’s latest levies have raised concerns his policies could create a global recession.
The White House rolled out its promised 25% tariffs on steel and aluminum imports on Wednesday, triggering immediate reprisals from the European Union and Canada. Trump said the US would respond to the countermeasures, raising the risk of further escalation in his global trade war. Such moves and rhetoric have helped drive the precious metal’s 12% advance this year.
Spot gold was little changed at $2,938.26 an ounce at 8 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver was steady, after rallying by 3.5% during the previous two sessions. Platinum and palladium edged up.
Source: Bloomberg
