BENGALURU- Gold prices edged higher on Thursday as uncertainty over tariffs persisted, driving safe-haven demand, while a cooler-than-expected US inflation print also supported bullion by strengthening expectations of rate cuts.
Spot gold was up 0.4 percent at $2,943.66 an ounce while US gold futures firmed 0.2 percent to$2,951.90.
“I think $3,000 is the next logical target, likely reached sometime over the next several months,” said Marex analyst Edward Meir. “CPI data was encouraging but I suspect that the tariff increase has yet to be picked up in the inflation data.”
Data showed that the US consumer price index increased less than expected last month, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the cost of most goods in the months ahead.
Lower inflation leaves more room for the US Federal Reserve to cut interest rates, and non-yielding gold thrives in a low-interest rate setting.
