Gold trades in tight range ahead of US inflation data

Gold prices flitted within a narrow range on Wednesday as investors awaited key U.S. inflation data for insights into the potential scale of a Federal Reserve rate cut next month. Spot gold  was steady at $2,635.56 per ounce, as of 0222 GMT, moving largely within a slim $9 range during the session. Bullion hit over one-week low on Tuesday.  U.S. gold futures rose 0.6% to $2,635.80.  “There’s the geopolitical element to all of this, which is to say that some selling pressure has emerged because of the ceasefire agreement with Israel and Lebanon,” said Kyle Rodda, financial market analyst at Capital.com.

Treasury yields fall as investors await the Fed’s preferred inflation gauge

Higher fuel prices could be in the cards if President-elect Donald Trump follows through with his tariff threats on Canada, according to industry experts, who are skeptical on whether the new levies will ever be implemented.

Trump on Monday pledged to implement additional tariffs on China, Canada and Mexico on day one of his presidency, according to his posts on social media platform Truth Social. He said he would sign an executive order on Jan. 20 imposing a 25% tariff on all imports from Canada and Mexico, a move that may breach the terms of a regional free trade agreement.