Yeliz Akmaca 
Before the US consumer price index (CPI) data, investors turned to gold on safe-haven demand. Gold rose on Wednesday as both this demand and the decline in oil prices eased inflation concerns. Expectations for potential Federal Reserve rate cuts this year also resurfaced.
Spot gold gained 0.2% to $5,202.10 per ounce. April-delivery US gold futures fell 0.6% to $5,211. Oil prices dropped below $90 per barrel. Gold has gained more than 20% this year amid rising geopolitical and economic uncertainty, reaching consecutive record levels.
According to CME Group’s FedWatch tool, investors expect the Fed to keep rates unchanged at its two-day meeting on March 18 but still anticipate at least two rate cuts this year.
Fluctuations in Silver, Platinum, and Palladium
Spot silver fell 0.2% to $88.24 per ounce. Spot platinum rose 0.1% to $2,202.52, while palladium gained 0.9% to $1,669.82.
Investors are unsettled by uncertainty over the future of the Iran conflict. The dollar has shown volatility. Global markets are pricing in US President Donald Trump’s efforts to end the conflict soon. At the same time, Trump continues to threaten harsh penalties against Iran over attempts to block energy flows through the Strait of Hormuz.
Short-Term Reactions in the Currency Market
- The euro rebounded slightly by 0.18% to $1.163175 from Monday’s three-month low. The pound rose 0.25% to $1.3449.
- The US dollar index, which measures the dollar against six major currencies, fell to 98.773, near Monday’s three-month high.
Rising Tensions in the Middle East: Investors on Edge
On the 12th day of the war, the US and Israel conducted reciprocal airstrikes against Iranian forces across the Middle East. The besieged Tehran government warned that state security forces are “on alert with fingers ready” if anti-government protests flare up again.
Rapidly developing events are forcing investors to price risk carefully. Another key focus is the February US inflation data to be released on Wednesday. According to a Reuters survey of economists, core consumer prices are expected to rise 0.2% for the month, while overall prices increase by 0.3%.
Meanwhile, the Wall Street Journal reported on Tuesday that the International Energy Agency proposed its largest-ever release of oil reserves. This development contributed to the drop in oil prices.
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