- Gold prices rose in Asian trading on Thursday as weak inflation data in the United States boosted expectations of interest rate cuts, while President Donald Trump’s new tariff threats maintained gold’s traditional appeal as a safe-haven asset.

- Spot gold increased by 0.4% to $2,945.18 per ounce, while April gold futures climbed 0.2% to $2,953.62 per ounce.

- The U.S. Consumer Price Index (CPI) rose by 0.2% in February, leading to an annual increase of 2.8%, lower than the expected 2.9% and below January’s 3.0% rise.

- This slowdown in inflation has reinforced expectations that the Federal Reserve may consider cutting interest rates in the near future.

- Markets are currently pricing in three rate cuts this year, with the first one expected in June 2025, according to the FedWatch tool.

- Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.

- The Federal Reserve is set to meet on March 18-19 to decide on interest rates.

- On Wednesday, Trump threatened additional tariffs on European goods if the European Union proceeded with its planned retaliatory tariffs on U.S. products. This escalation came shortly after the U.S. imposed a 25% tariff on steel and aluminum imports, a move that has heightened tensions with key trading partners.

- Canada responded by imposing retaliatory tariffs on $21 billion worth of U.S. imports, including steel and aluminum products, in addition to the previous 25% tariffs.

- The U.S. dollar index remained stable during the Asian session but hovered near a four-month low, which was recorded last week amid recession fears.

- Meanwhile, other precious metals saw weak performance, with platinum futures falling 0.7% to $990.10 per ounce, while silver futures declined 0.4% to $33.593 per ounce.

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