By: Creamer media

Gold edged down on Wednesday as investors awaited a series of U.S. economic data releases this week to evaluate the Federal Reserve’s policy trajectory. Spot gold declined 0.62 percent to $5,200.64 per ounce as of 05:43 GMT, while U.S. gold futures for April delivery fell 0.68 percent to $5,206.69.

In the UAE, retail gold rates recorded slight decreases on Wednesday. The price of 24-carat gold dipped by AED0.25 to AED627.25 per gram, while 22-carat decreased AED0.75 to AED580.75. Furthermore, 21-carat decreased AED0.50 to AED557.00, and 18-carat fell by AED0.75 to AED477.25. The 14-carat variety lost AED0.50, reaching AED372.25.

Oil prices slid below $90 per barrel, easing inflation concerns a day after U.S. President Donald Trump forecast a rapid conclusion to the war with Iran. Simultaneously, the International Energy Agency proposed its largest-ever oil release from strategic reserves to stabilize the market. The conflict in the Middle East has effectively halted traffic through the Strait of Hormuz, a critical chokepoint for 20 percent of global oil and liquefied natural gas. This disruption has stranded tankers for over a week and compelled producers to suspend output as storage capacities reach their limits, propelling energy prices higher.

U.S. CPI in focus

Gold, typically regarded as a safe-haven asset, has gained more than 20 percent this year, setting multiple record highs amid intensified geopolitical and economic instability. Markets are currently focused on the U.S. Consumer Price Index for February, scheduled for release later today, followed by the Personal Consumption Expenditures index on Friday. According to the CME Group’s FedWatch tool, investors anticipate the Fed will maintain interest rates at the conclusion of its two-day meeting on March 18. In other precious metals, spot silver fell 1.88 percent to $87.76 per ounce, and platinum dropped 0.46 percent to $2,180.00, while palladium rose 0.49 percent to $1,651.00.