Gold Holds Steady at $2,916 Ahead of Key U.S. Inflation Data

Gold prices maintained stability at $2,916.69 per ounce on Wednesday morning as investors await crucial U.S. inflation figures.

The precious metal gained 1% on Tuesday amid growing economic concerns and a weakening dollar, according to market data from March 12, 2025. Gold has surged 11.15% since January, reaching an all-time high of $2,956.22 in February.

Analysts attribute this impressive performance to mounting fears about economic slowdowns triggered by tariff wars. President Trump’s trade policies have created significant market volatility and heightened safe-haven demand.

Investors now focus on the U.S. Consumer Price Index data release scheduled for later today. This report will provide insights into potential Federal Reserve interest rate decisions.

Higher inflation might force the Fed to maintain elevated rates, potentially reducing gold’s appeal as a non-yielding asset. The U.S. dollar index has fallen to its lowest level since early November.

This decline makes gold more affordable for holders of other currencies and supports its price. KCM Trade chief market analyst Tim Waterer noted gold operates in “consolidation mode” ahead of the inflation data.

Gold Futures Ease Amid Technical Weakness

Gold futures on the Multi Commodity Exchange opened at ₹85,139 per 10 grams today. They touched a high of ₹86,271 before settling at ₹86,037, showing a slight decrease of 0.13% from yesterday’s close.

Global gold ETFs have shown positive momentum in early 2025. January saw impressive inflows totaling $3 billion, primarily driven by European demand. European funds recorded their largest monthly inflow since March 2022, while North American funds posted $500 million in outflows.

Technical indicators suggest the presence of a short-term bearish trend. However, analysts expect an upward rebound with a potential target above $2,975. Support levels remain near $2,895, while resistance sits around $2,935.

Meanwhile, attention also turns to a potential ceasefire deal in Ukraine. The U.S. has resumed military aid and intelligence sharing with Ukraine, which might affect gold’s safe-haven status. Silver prices dipped 0.5% to $32.76 an ounce, while platinum rose 0.4% to $978.60.

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