Gold prices climb as investors assess mixed signals from Iran, with U.S. CPI data in focus.

Gold prices edged higher in Asian trading on Wednesday as investors weighed mixed developments surrounding the U.S.-Israel conflict with Iran, particularly concerns about energy market disruptions and the possibility that the fighting could ease.

Traders are also awaiting U.S. consumer inflation data for February for fresh insight into the health of the world’s largest economy, although the report is unlikely to fully capture the recent surge in energy prices linked to the Iran conflict.

Spot gold rose 0.2% to $5,204.29 an ounce as of 01:17 ET (05:17 GMT), while gold futures slipped 0.5% to $5,213.11 per ounce.

Gold breaks above $5,200/oz as markets weigh mixed Iran signals

Gold’s gains on Wednesday pushed prices above the $5,000–$5,200 per ounce range that had contained trading over the past week, though it remained uncertain whether the breakout would hold.

The precious metal has experienced sharp volatility in recent weeks, retreating significantly after reaching a record high near $5,600 per ounce in late January.

Conflicting developments surrounding the Iran war also contributed to choppy trading this week. U.S. President Donald Trump said late Monday that the conflict was nearing an end. However, exchanges of strikes between the U.S., Israel, and Iran continued into early Wednesday, marking the twelfth straight day of fighting.

Investors remain concerned that a surge in energy-driven inflation could prompt global central banks to adopt a more hawkish policy stance—an outlook that typically weighs on gold. As a result, the metal’s gains were capped despite rising safe-haven demand.

Elsewhere in the precious metals market, price movements were relatively muted. Spot silver slipped 0.1% to $88.2245 an ounce, while spot platinum edged up 0.3% to $2,208.89 per ounce.

U.S. CPI report in focus for fresh clues on inflation

Markets are awaiting the release of U.S. consumer price index (CPI) data for February later on Wednesday, which is expected to offer clearer signals on inflation and the outlook for interest rates in the world’s largest economy.

Headline CPI is forecast to hold steady at 2.4% year-on-year, while core CPI is projected to remain unchanged at 2.5%.

Although the data is unlikely to capture the recent spike in energy prices triggered by the Iran conflict, investors will still monitor the report closely for indications on consumer spending trends and the broader health of the U.S. economy.

The CPI release follows a weaker-than-expected February payrolls report, which has fueled some concerns that economic momentum in the United States may be slowing.

Sources: Ambar Warrick