Gold prices increase as expectations of fed fees grow

Gold continues its rally

The gold price () increased by 0.55% on Wednesday, driven by concerns about commercial tariffs and the decrease in us, which could cause more cuts by.

Yesterday’s consumer price index (CPI) revealed that the central price increased by 0.2% in February, below the expected increase of 0.3%. Inflation deceleration means that Fed is more likely to reduce interest rates. In theory, this will reduce the opportunity cost of keeping non -winners such as gold, which increases its appeal as a safe investment.

Financial markets now expect Fed to resume cutting rates in June due to the deterioration of economic perspectives. However, according to Reuters, the improvement in inflation is probably temporary. The aggressive tariffs of the president of the United States in imports will probably increase the cost of most goods in the coming months. A potentially misleading food and the risk of increasing commercial tariffs that threaten global economic stability support gold prices. The appetite of risk and feeling of investors get worse, and investors seek a safe refuge against potentially increased volatility and decreased yields in traditional asset classes.

Xau/USD rose during Asian and early European commercial sessions. Today, the main approach is in the US macro statistics. And at 12:30 PM UTC. These reports can influence the expectations of interest rates and the feeling of investors. Data that show an increase in producer inflation or a drop in unemployment claims can temporarily pause the rally in Xau/USD. On the contrary, the weakest figures will probably attract the torque towards the level of $ 2,973.

“Spot Gold can visit the maximum of February 24, $ 2,956 per ounce, since it has broken $ 2,939, the last barrier towards the maximum,” said Reuters analyst Wang Tao.

Geopolitical and political anxieties Euro pressure

The euro () lost 0.29% against (USD) on Wednesday despite a slowdown in the United States inflation.

The US consumer price index. (ICC) increased only 0.2% in February, below the 0.3% increase expected by the market. Even so, EUR/USD could not win the data. This is probably because commercial uncertainties continue to negatively impact market confidence, particularly in the Eurozone. After 25% of tariffs on all imports of steel and aluminum, the president of the United States, Donald Trump, said it would establish additional tariffs if the EU would implement reciprocal tariffs in certain US assets.

“Whatever they charge us, we are accusing them of” Trump told the White House journalists.

The EU has threatened to impose against the counter-tariffs the US products worth 26 billion euros ($ 28 billion) next month.

‘Obviously, the general issue has been around the commercial war and the return to rates not only with the partners of North America but also with the other European countries in particular and China. The feeling has a very short strap, and can change so fast depending on the main risks, “said Amarjit Sahota, executive director of KlaITY FX.

During the past week, the euro has been promoted by the perspective of a substantial German fiscal expense. However, the situation has become more complex after the Green Party promised to block those plans and present rival proposals. In addition, the potential for a high fire in Ukraine has reinforced investor optimism. However, this is still very precarious since Russia has not yet committed to any concrete cessation of hostilities, leaving the situation vulnerable to rapid climb. EUR/USD is now at a critical crossroads. The couple’s trajectory depends largely on resolving these forces in conflict: German tax plans, the US trade war and the EU and the war in Ukraine.

EUR/USD fell slightly during Asian and early European commercial sessions. The most important event of today is the launch of the US macro statistics. The report of the Producer Price Index (PPI) and the weekly data of unemployment claims at 12:30 PM UTC. These reports can influence the expectations of interest rates and the feeling of investors. Therefore, merchants can see strong price movements in several financial instruments, including EUR/USD. The key levels to observe are 1.09000 resistance and support in 1,086400.

Commercial fees tensions support Japanese yen

The Japanese Yen () lost 0.32% against the US dollar (USD) on Wednesday when the green back was strengthened due to safe security flows.

The unpredictable tariff pronouncements of President Donald Trump lit a commercial tab between the United States and their commercial partners, creating significant uncertainty. Japan has avoided confrontation with the United States with respect to tariffs, but broader global commercial tensions and the feeling of risk exert a downward pressure on the USD/JPY. Investors seek the relative security of Japanese and during periods of greater market volatility and economic uncertainty derived from commercial disputes.

USD/JPY has lost more than 6% since the beginning of 2025 despite a large interest rate differential between the United States and Japan. Even so, the divergence in the expectations of monetary policy continues to support JPY. Monetary markets indicate a probability of almost 30% that the Bank of Japan (Boj) lifts its base rate towards 1% by the end of the year. Meanwhile, the Federal Reserve (FED) is expected to reduce its base rate in 50 basic points during the same period. Early, the governor of Boj Kazuo Ueda expressed optimism about consumer spending. He reiterated the bank’s commitment to reduce his large general balance, pointing out a monetary stimulus step.

USD/JPY fell during Asian and early European commercial sessions. Today, the market focuses on US macro statistics.: PPI and weekly unemployment claims at 12:30 pm UTC. These reports can potentially influence the expectations of interest rates and the feeling of investors. In general, merchants can see acute price movements in several financial instruments today, including USD/JPY. The key levels to observe are resistance to 148,400 and support to 147,500.