Gold pushed higher on softer US inflation (CPI) report despite firm US Treasury bonds and US dollar.
At 8.50 am, gold was at $2,938.36, up 0.16% since it opened in early trading on Thursday in the Asian session.
The US Bureau of Labor Statistics (BLS) revealed that consumer inflation moderated lower for February but the market remains skeptical about aggressive tariffs on US imports that could push it up again.
The latest data has reinforced expectations that the Fed will cut interest rates in 2025. Chairman Jerome Powell remains cautious as his officials will not make a decision based on just one month's report.
On Wednesday, 25% US tariffs on steel and aluminium took effect as US President Donald Trump seeks to reduce the trade deficit by imposing duties on imported products.
However, the precious metal market continues to see progress in the ceasefire between Russia and Ukraine.
The World Gold Council (WGC) revealed that central banks continue to buy gold. The People's Bank of China (PBoC) and the National Bank of Poland (NBP) added 10 and 29 tonnes respectively in the first two months of 2025.
Meanwhile, market participants will be looking ahead to the release of the US Producer Price Index (PPI) for February, Initial Jobless Claims and the University of Michigan (UoM) Consumer Sentiment.
