Gold trading rebounded on Tuesday as the US dollar (USD) moved lower amid falling US yields.
The unexpected rebound came as inflationary action spurred by US trade policy.
At 8.30am, gold was at $3,019.76, unchanged since it opened early Wednesday in Asian trading.
The market was mixed, with US equity indices trading on the choppy side and Consumer Confidence data falling to its lowest level in more than four years amid worrisome inflation readings.
The yellow metal therefore rose higher as the latest data painted a stagflationary economic outlook.
Meanwhile, Fed Governor Adriana Kugler said that goods inflation had picked up, while stressing that some subcategories were showing signs of recovery.
New York Fed President John Williams stressed that both corporate and household sectors were facing increasing uncertainty about the economic outlook, reflecting concerns about the future state of the economy.
Currently, the market is pricing in 64.5 basis points of Fed easing in 2025.
