Gold edges higher on safe-haven demand ahead of US CPI data

Gold edged higher on Wednesday on safe-haven demand and as a retreat in oil prices calmed inflation worries, reviving expectations for potential Federal Reserve rate cuts this year as investors awaited US Consumer Price Index (CPI) data that may offer more cues.

Spot gold was up 0.2 per cent at $5,202.10 per ounce, as of 05:25 GMT. US gold futures for April delivery fell 0.6pc to $5,211.

Oil prices dropped below $90 per barrel on reports of the International Energy Agency (IEA) proposing the largest release of oil reserves in its history to curb surging prices.

“With these (inflation) concerns having eased … hedging and safe-haven attributes (of gold) has once again come to the fore. So, I think from current levels we remain optimistic,” said Nikos Kavalis, Singapore managing director of Metals Focus.

The US and Israel pounded Iran with what the Pentagon and the Iranians on the ground called the most intense airstrikes of the war, despite global markets betting that Trump will seek to end the conflict soon.

The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas, stranding tankers for more than a week and forcing producers to halt output as storage fills, driving energy prices soaring.

Bullion, traditionally viewed as a safe-haven asset, has risen more than 20pc so far this year, notching successive record highs amid heightened geopolitical and economic uncertainty.

“I think it’s very likely that we’ll see gold get to over $6,000 an ounce by the third or fourth quarter this year, probably even higher early next year,” Kavalis said.

Markets are now awaiting the US consumer price index for February, due later in the day, and the Personal Consumption Expenditures (PCE) index — the Fed’s preferred inflation gauge — on Friday.

Investors expect the Fed to keep rates steady at the end of its two-day meeting on March 18 but still see at least two rate cuts this year, per CME Group’s FedWatch tool.

Spot silver edged 0.2pc lower to $88.24 per ounce. Spot platinum rose 0.1pc to $2,202.52, and palladium rose 0.9pc to $1,669.82.

Bulls return as KSE-100 surges past 9,000 points, market closes in the green

FBR asked to boost tax collection

Remittances steady, but war risks loom

Fatima Fertilizer launches Sarsabz Tabeer: Seeds of Change campaign on International Women’s Day to celebrate women in agriculture

Women in Thar: Breaking barriers, transforming lives

ParkView City homebuyers can now avail UBL Home Financing

Brace for impact: The Middle East war has reached Pakistan

Kutchery Chowk flyovers, underpasses in Rawalpindi set to open for traffic before Eid

Inmate’s account hints at Epstein death ‘cover-up’

Higher education goes online, schools shut for 2 weeks, 4-day work week announced as ‘austerity measures’

Pakistan Navy launches Operation Muhafizul Bahr to counter threats to shipping, maritime trade: ISPR

Pakistan, India exchange sharp words at UN Security Council over Afghanistan

India crush New Zealand to win third T20 World Cup title

T20 World Cup: Sahibzada Farhan makes it to ICC’s Team of the Tournament

PM Shehbaz to announce austerity plan tomorrow amid global fuel crisis

US lawmakers warn of Trump’s ‘incoherent’ Iran war strategy after classified briefing

Oil falls on report of IEA proposing biggest oil release ever

Gold edges higher on safe-haven demand ahead of US CPI data

Indonesia moves to ban social media apps, Roblox for children under 16

ICC rejects bias claims over travel delays after West Indies, South Africa teams stranded in India

Rally continues as KSE-100 advances over 2,000 points

Pakistan Roundup: Iran Ties, Austerity Measures

SGA Game Winner! Thunder Edge Nuggets

Global Markets Update: Oil Swings Wildly, Gold Slides As Iran War Shakes Economy

Middle East Update: Pentagon Warns Of War’s “Most Intense Day” As Iran Strikes Region

Did Israel Leak False Claims About Gulf Strikes on Iran?

The New Age of Warfare: Technology, Power and the Climate Cost

Oil Market Update: Trump Signals Sanctions Relief; Putin’s Offer To Europe

Rs1.47bn flyover in Shah Faisal Colony to be ready in 100 days: mayor

Brace for impact: The Middle East war has reached Pakistan

© Dawn Business