HG MARKETS:

On Wednesday, gold prices were stable, staying near a recent record high that was attained in the previous session. A number of positive factors, such as growing inflationary pressures and persistent geopolitical concerns, supported the precious metal’s steady rise as a safe-haven asset. Gold futures were trading at $2365.3 per ounce at 1440 HRS PKT after hitting a record high on Tuesday. At the same time, U.S. gold futures rose by 0.5% to$2,373.50.The main variables driving gold prices at the moment are geopolitical tensions, the rise of inflationary threats, the volatility of the Chinese currency, and central banks’ acquisition of gold reserves in emerging countries as a risk diversification strategy. The eagerly anticipated U.S. consumer price index (CPI) report for March, which is scheduled today to release at 1730 HRS PKT, has taken center stage in the market.The core CPI is expected to slow down to 3.7% while the annual CPI is expected to grow to 3.4%. Higher inflation numbers could put pressure on expectations for rate reductions. This is especially true given that expectations have moved in the wake of strong job data. As interest rates rise, owning non-yielding gold typically loses appeal. Awaited by investors was the publication of the minutes from the March meeting of the US Federal Reserve, which is scheduled tonight at 2300 HRS PKT.Last month, the Fed, which had previously kept interest rates between 5.25% and 5.50%, reaffirmed its goal to lower rates by 75 basis points by the end of 2024. Spot silver held steady at $28.15 an ounce following its peak of almost three years on Tuesday. Silver is expected to beat gold this year, predicting a change in investment demand that had previously trailed, which would drive up silver prices.
Palladium dropped by 0.4% to $1,088.70, while platinum had a minor dip of 0.2% to $976.60.