Gold prices rose as USD weakened, driven by economic concerns and trade wars, with focus on US CPI report.

From Investing.com: 2025-03-12 04:38:00

Gold prices rose by 0.92% as the USD weakened amid economic concerns and trade wars. XAU/USD tends to increase during economic uncertainty as investors seek a safe haven in gold. Weakening USD supports XAU/USD, but doubts remain about a prolonged rally due to record-high levels. Today’s focus is on the US CPI report, with expectations of a 0.3% monthly core inflation rise. Analysts predict spot gold may break resistance at $2,927 per ounce.

The euro surged by 0.79% against the USD on news of a ceasefire in Ukraine, boosting investor confidence. The ceasefire’s impact on EUR/USD depends on Russia’s response. Expectations of increased German defence spending and potential ECB rate cuts pressure EUR/USD. Today’s key event is the US CPI report, with expectations of a 0.3% monthly core inflation rise. Resistance at 1.10170 and support at 1.08284 are crucial levels to watch.

The Canadian dollar remained stable against the USD amid escalating trade tensions and a looming interest rate decision from the Bank of Canada. USD/CAD’s volatility is driven by trade tariff news and market reactions. Market expects a 25-basis-point interest rate cut from the BoC today. USD/CAD rose slightly, with key events including the US CPI report and the BoC’s interest rate decision and press conference. Trade tariff developments will also influence the Canadian dollar.



Read more at Investing.com: Gold Prices Steady Ahead of Key US Inflation Report