Gold Falls Slightly, Energy Inflation and Fed Policy Restrain
Gold prices were limited on Wednesday (March 11) as markets weighed the escalation of Middle East wars and a report that the International Energy Agency (IEA) recommended the release of the largest oil reserves in history. Spot gold fell 0.3% to US$5,177.50 per ounce, while US April gold futures fell 1.1% to US$5,185.20 amid a stronger dollar and lingering inflation concerns.
German Economy Minister Katherina Reiche said the IEA recommended member countries release 400 million barrels of reserves, while oil markets remained volatile as conflicts disrupted production and refining in the Middle East. High energy volatility has again raised inflation risks, prompting markets to trim expectations for a Fed interest rate cut to just one this year—after the latest US inflation data was judged to be in line with expectations.
Although gold has gained about 20% year-to-date, its movement has been relatively subdued since the Iran war broke out late last month, as safe-haven support has been overwhelmed by the dollar and higher yields. In other metal markets, silver also weakened, in line with the consolidation of precious metals after sharp movements in recent days.
Source: Newsmaker.id
