Gold prices in Asian trade showed signs of stabilization on Wednesday, following a recent tumble from record highs, primarily influenced by a robust U.S. inflation reading that fueled concerns about the potential for prolonged higher interest rates.
The precious metal had experienced a surge, reaching as high as $2,200 earlier in the week, driven by initial expectations of early interest rate cuts by the Federal Reserve. However, Tuesday’s release of the consumer price index data dampened these expectations, leading to a degree of profit-taking and a subsequent decline in gold prices.
As of the latest update, spot gold steadied at $2,159.32 per ounce, while gold futures expiring in April registered a 0.1% decrease, settling at $2,164.45 per ounce by 00:13 (04:13 GMT). Both instruments saw approximately a 2% decline from the record highs achieved earlier in the week.
Spot gold had previously reached a historic high of $2,195.20 per ounce, while gold futures had peaked at $2,203.0 per ounce on Monday. Investors will continue to monitor economic indicators, central bank actions, and market dynamics to assess the future trajectory of gold prices amid ongoing global uncertainties.
