Gold prices remained stable in Asian trading on Wednesday as investors awaited critical U.S. inflation data while seeking safety amid escalating trade tensions following President Donald Trump's tariff moves.

Gold Price Overview

• Spot Gold held firm at $2,911.17 per ounce.
• Gold Futures (April expiry) were steady at $2,921.24 per ounce.

Key Drivers Behind Gold's Stability

✅ Inflation Data Awaited: Investors are closely monitoring the upcoming U.S. Consumer Price Index (CPI) report for insights into the Federal Reserve's interest rate decisions.
✅ Safe-Haven Demand: Amid geopolitical tensions and trade policy uncertainty, gold's appeal as a store of value remains strong.
❗ Fed's Stance: While the Fed signaled no immediate rate cuts, ongoing tariff concerns may keep inflation risks in focus.
❗ Trump's Tariff Impact: The newly imposed 25% tariff on U.S. imports of steel and aluminum has intensified global trade anxieties, further driving safe-haven demand for gold.

Market Implications

• Gold's Role as a Hedge: Amid rising recession risks and tariff disputes, gold's stability underscores its position as a protective asset.
• Interest Rate Sensitivity: If the CPI report signals cooling inflation, gold prices could rise as rate-cut expectations grow. Conversely, stubborn inflation may pressure gold prices as the Fed maintains a hawkish stance.

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