Gold prices rose slightly (0.1%) to $2,917.93 per ounce on Wednesday. Two main factors supported gold: uncertainty about future tariffs and a positive inflation report that suggests the Federal Reserve might cut interest rates soon.
The latest inflation numbers showed prices increased by only 0.2% in February, much lower than January’s 0.5% increase. While this is good news now, many experts believe prices could rise again soon if new tariffs on imported goods take effect.
The Fed cut interest rates by 1% last year and is expected to cut rates again starting in June due to economic worries. This helps gold prices because gold tends to do well when interest rates are low. Investors are watching for more economic data coming Thursday. Other precious metals also did well on Wednesday, with silver, platinum, and palladium all seeing price increases. According to UBS analysts, silver might perform better than gold if manufacturing improves.