Gold Prices In US: Yellow Metal Rates Hold Near Record Highs Amid Inflationary Concerns, Geopolitical Tensions

Gold prices in the United States remained steady on Wednesday, hovering close to the record peak reached in the previous session. The precious metal continued to be buoyed by a combination of emerging inflationary pressures and ongoing geopolitical uncertainties, bolstering its status as a safe-haven asset.

At 0339 GMT, spot gold was virtually unchanged at $2,351.94 per ounce, following hitting a record high of $2,365.09 on Tuesday. Concurrently, US gold futures experienced a modest uptick of 0.3%, reaching $2,369.90 per ounce.

In the domestic market, the price of ten grams of 22-carat gold saw a marginal increase of $5, climbing to $715 from the previous day's figures. Similarly, the price for ten grams of 24-carat gold also rose by $5 to $755 from the day before.

This pattern of upward movement extended to broader market metrics, with the cost for 100 grams of 22-carat gold and 100 grams of 24-carat gold each increasing by $50 to $7,150 and $7,550, respectively, compared to the preceding day.

Additionally, prices for 10 grams of 18-carat gold and 100 grams of the same category saw increments of $4 and $40 to $585 and $5,850, respectively, from the previous day's values.

The surge in gold prices has been fueled by several factors including robust central bank buying, inflows into safe-haven assets amidst heightened geopolitical risks, and demand from momentum-following funds. These factors have collectively contributed to gold's impressive 14% gain so far this year.

Investor attention is also drawn to the eagerly awaited US consumer price index (CPI) report for March, scheduled for release at 1230 GMT. Analysts anticipate that the year-on-year CPI could rise to 3.4%, while the core CPI is expected to moderate to 3.7%, according to a Reuters poll.

Furthermore, market participants await the release of the minutes from the Federal Reserve's March meeting, slated for 1800 GMT. The Fed, which maintained interest rates within the 5.25%-5.50% range last month, hinted at the possibility of cutting rates by 75 basis points by the end of 2024. However, following a robust US jobs report last week that surpassed expectations, doubts have emerged regarding the feasibility of rate cuts within the year. This scepticism is grounded in the understanding that higher interest rates diminish the attractiveness of holding non-yielding assets like gold.

In parallel to the performance of gold, spot silver exhibited minimal movement, trading at $28.15 per ounce, after reaching its highest levels since June 2021 on Tuesday. Meanwhile, platinum experienced a marginal decline of 0.1% to $978.50, and palladium dipped by 0.2% to $1,090.78.