Gold Falls as Strengthens DolLar Amid Hopes of Iran De-escalation
Gold prices weakened on Wednesday (March 11th) as the US dollar strengthened, while market attention remained focused on the Iran war, which entered its 12th day with no signs of de-escalation.
Spot gold fell 0.4% to US$5,173.60 per ounce at 3:11 p.m. US time, while gold futures fell 1.2% to US$5,180.36.
Gold's price remains volatile after falling from a record high near US$5,600 in late January. The rapidly shifting narrative of the war contributed to this week's "whipsaw" trading: Trump initially declared the conflict nearing an end, but attacks between the US, Israel, and Iran continued into Wednesday.
On the macro front, US government data showed that consumer inflation remained moderate in February. Annual CPI was recorded at 2.4% (y/y), while monthly inflation was 0.3% (m/m)—both in line with projections. Core CPI figures were at 2.5% (y/y) and 0.2% (m/m), also in line with expectations, despite rising energy and food prices.
However, the market believes the CPI data does not fully capture the impact of the Iran conflict that began in late February. The energy surge risks driving inflation forward and encouraging a more hawkish stance from global central banks—a scenario that could support the dollar and limit gold's upside.
The next focus is the January core PCE release, which is expected to come in at 3.1% (y/y) and 0.4% (m/m), an inflation indicator often used by the Fed and considere
Source: Newsmaker.id
