Gold prices rose in Asian trading on Thursday as soft inflation print in the U.S. supported interest rate cut bets, while President Donald Trump’s fresh tariff threats kept bullion’s safe-haven appeal intact.
Spot Gold rose 0.4% to $2,945.18 per ounce, while Gold Futures expiring in April gained 0.2% to $2,953.62 an ounce by 00:56 ET (04:56 GMT).
Gold rises as cooling inflation data backs rate-cut bets
The U.S. Consumer Price Index (CPI) increased by 0.2% in February, leading to an annual rise of 2.8%, slightly below the anticipated 2.9% and down from January’s 3.0% gain.
This moderation in inflation has reinforced expectations that the Federal Reserve may consider cutting interest rates in the near future.
Markets are currently pricing in three rate cuts this year, with the first cut of 2025 in June, according to the Fedwatch tool.
The prospect of lower interest rates typically diminishes the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.
The Fed is scheduled to meet on March 18-19 to decide on interest rates.
Trade war deepens as Trump threatens more tariffs
Ongoing uncertainties surrounding U.S. trade policies have further bolstered gold’s appeal as a safe-haven asset.
Trump on Wednesday threatened additional tariffs on European Union (EU) goods if the EU proceeded with its planned counter-tariffs on U.S. products.
This escalation came shortly after the U.S. implemented a 25% tariff on steel and aluminum imports, a move that has strained relations with key trading partners.
The US Dollar Index was largely unchanged in Asia hours, but hovered near a four-month low touched last week, amid recession fears.
Other precious metals were weaker. Platinum Futures fell 0.7% to $990.10 an ounce, while Silver Futures dipped 0.4% to $33.593 an ounce.
Copper falls on threats to include the red metal to trade tariffs
Copper prices inched lower on Thursday as the Trump administration vowed to add copper to its trade protections.
Earlier to this, Trump had signed an executive order initiating an investigation into whether copper imports threaten national security, a process that could lead to such tariffs.
Benchmark Copper Futures on the London Metal Exchange inched 0.2% lower to $9,763.80 a ton, while Copper Futures expiring in April lost 0.2% to $4.8340 a pound.
