Gold rose on Wednesday as a retreat in oil prices eased inflation worries, while investors awaited a slew of U.S. economic data this week to gauge the Federal Reserve’s policy outlook.
Spot gold rose 0.4% to $5,213.99 per ounce, as of 0109 GMT. U.S. gold futures for April delivery fell 0.4% to $5,221.80.
The U.S. and Israel pounded Iran with what the Pentagon and the Iranians on the ground called the most intense airstrikes of the war, despite global markets betting that President Donald Trump will seek to end the conflict soon.
The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas, stranding tankers for over a week and forcing producers to halt output as storage fills, driving energy prices soaring.
The U.S. military “eliminated” 16 Iranian mine-laying vessels near the Strait of Hormuz on Tuesday, the U.S. Central Command said in a statement.
Oil prices eased, cooling inflation concerns, a day after Trump predicted a quick end to the war with Iran, while the International Energy Agency proposed the largest ever oil release from strategic reserves, according to a report.
Markets are now awaiting the U.S. consumer price index for February, due later in the day, and the Personal Consumption Expenditures (PCE) index – the Fed’s preferred inflation gauge – on Friday.
Investors expect the Fed to keep rates steady in the current 3.5% to 3.75% range at the end of its two-day meeting on March 18, per CME Group’s FedWatch tool.
Spot silver rose 0.6% to $88.89 per ounce. Spot platinum gained 1% to $2,221.48 and palladium rose 1.5% to $1,679.73.
