PRECIOUS-Gold eases as dollar firms; US inflation data awaited

ReutersMar 12, 2025 7:42 AM

Gold in "consolidation mode" ahead of inflation data - analyst
U.S. consumer price index (CPI) data at 1230 GMT
Kyiv said it would

By Anjana Anil

March 12 (Reuters) - Gold eased on Wednesday as the dollar ticked up, while investors awaited U.S. inflation data to gauge the Federal Reserve's rate cut path amid trade tensions and economic slowdown fears and market focussed on news of a potential Ukraine-Russia ceasefire.

Spot gold XAU= fell 0.2% to $2,908.93 an ounce as of 0720 GMT, while U.S. gold futures GCcv1 lost 0.2% to $2,908.93.

The dollar index .DXY firmed slightly, making gold more expensive for overseas buyers.

"Gold is operating in 'consolidation mode' ahead of the next batch of U.S. inflation data," KCM Trade chief market analyst Tim Waterer said.

Investors are awaiting the U.S. Consumer Price Index data at 1230 GMT to analyse the Fed's interest rate stance going forward this year.

If rising price pressures force the Fed to keep interest rates higher, non-yielding gold may lose its allure.

U.S. President Donald Trump's erratic tariffs are widely expected to stoke inflation and economic uncertainty and had prompted gold to reach a record high of $2,956.15 on February 24.

"I expect gold to remain a favoured asset whilst investors are concerned about tariff wars and growth slowdowns. So, the bias for gold remains to the upside due to ongoing tariff dramas," Waterer said.

Trump defended his tariff policies on Tuesday as he met the CEOs of America's biggest companies, including many whose market value has dipped in recent days as recession and inflation fears soured consumer and investor sentiment. MKTS/GLOB

The U.S. president reversed course on a pledge to double tariffs on steel and aluminium from Canada to 50%, hours after announcing the higher tariffs on Tuesday.

Meanwhile, the U.S. agreed to resume military aid and intelligence sharing with Ukraine after Kyiv said it would accept a U.S. proposal for a 30-day ceasefire in its conflict with Russia.

Spot silver XAG= shed 0.7% to $32.70 an ounce, platinum XPT= rose 0.7% to $981.29 and palladium XPD= slipped 0.8% to $938.00.

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