Gold goes nowhere with US CPI release around the corner

LONDON (March 12) Gold’s price (XAU/USD) turns flat to $2,915 at the time of writing on Wednesday ahead of the United States (US) Consumer Price Index (CPI) release for February. Market consensus is for a deceleration in all inflation measures, both monthly and yearly gauges. However, many analysts and economists have commented that the current US tariff approach will be inflationary for the US, which could trickle through in the numbers. 

Meanwhile, traders are still cautious about tariffs after the Chinese Minister of Foreign Affairs Wang Yi commented that if the US wants to suppress China with its steel and aluminum tariffs. Europe, meanwhile, committed to putting countermeasures in place by April 13. On the geopolitical side, a ceasefire deal in Ukraine brokered by the US has been put forward to Russia for consideration. 

Daily digest market movers: CPI to move Fed bets

• Chinese consumption stocks rise as the nation’s annual political gathering wraps up with support for domestic demand. Hong Kong jewelers lead the gains, bolstered by haven demand for Gold proxies, Bloomberg reports.
• Wall Street is growing angsty as investors become increasingly unnerved by whipsawing tariff policy, sticky inflation, and the unknown pace of the Federal Reserve’s (Fed) interest-rate easing. Market forecasters at banks, including JPMorgan Chase & Co. and RBC Capital Markets, have tempered bullish calls for 2025 as Trump’s tariffs stoke fears of slowing economic growth, Bloomberg reports. 
• The CME Fedwatch Tool sees a 97.0% chance for no interest rate changes in the upcoming Fed meeting on March 19. The chances of a rate cut at the May 7 meeting currently stand at 39.5%. 

FXStreet