Gold falls as traders hunker down for US inflation print
Wed Feb 12 2025
Gold eased on Wednesday, after hitting an all-time high in the previous session on global trade war fears triggered by U.S. President Donald Trump's new tariffs, as the market's focus shifted to a key U.S. inflation report.
FUNDAMENTALS
Spot gold fell 0.1% at $2,895.23 per ounce, as of 0033 GMT, after climbing a peak of $2,942.70 on Tuesday.
* U.S. gold futures eased 0.3% to $2,923.40.
* Mexico, Canada and the European Union on Tuesday condemned Trump's decision to impose tariffs on all steel and aluminium imports next month, which fanned fears of a trade war as investors braced for yet more trade duty announcements.
* U.S. Federal Reserve Chair Jerome Powell said the economy is in a good place and the Fed isn't rushing to cut interest rates further, but is prepared to do it if inflation drops or the job market weakens.
* Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding asset's appeal.
* Investors now await U.S. Consumer Price Index (CPI) data due at 1330 GMT and Producer Price Index (PPI) data on Thursday.
* Federal Reserve Chair Jerome Powell is also due to testify before Congress later in the day.
* Elsewhere, gold leasing rates in India have doubled within a month to a record high, following the overseas market, where rates jumped due to a supply crunch as global banks divert the precious metal to the United States, industry officials told Reuters.
* Spot silver fell 0.1% to $31.78 per ounce, while platinum gained 0.1% to $984.50 and palladium firmed 0.3% to $978.77.