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........

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