BULLION LOSES SHINE, DROPS $20 AHEAD OF KEY US INFLATION DATA

Published on Feb 12, 2025 15:01

Gold prices tumbled over $20 per ounce in Wednesday�s Asian trade, pulling back from a record peak of $2968.5 reached earlier. Market sentiment turned cautious as investors braced for the January US CPI report, expected to show a slight uptick in monthly core inflation to 0.3%. The dollar index steadied near 108, curbing bullion�s appeal, while the Federal Reserve`s measured stance further dampened interest in non-yielding gold despite its reputation as an inflation hedge. Meanwhile, geopolitical uncertainties and trade tensions continue to lend support. President Trump�s announcement of aggressive new tariffs has stoked fears of an escalating trade war, boosting safe-haven demand. MCX bullion for April delivery is trading lower by nearly Rs 400 at Rs 85165 per 10 grams.