GOLD prices steadied on Wednesday (Mar 13), after posting its biggest decline in a month in the previous session after a sticky United States inflation report boosted bond yields and slightly tempered hopes for a June interest rate cut from the Federal Reserve.

Spot gold edged 0.1 per cent up to US$2,158.26 per ounce, as at 0151 GMT. US gold futures fell 0.1 per cent to US$2,163.50.

US consumer prices increased solidly in February amid higher costs for petrol and shelter, suggesting some stickiness in inflation.

The consumer price index rose 0.4 per cent last month. In the 12 months to February, it increased by 3.2 per cent, just above the 3.1 per cent estimate, after advancing 3.1 per cent to January.

Bullion fell 1.1 per cent on Tuesday, its worst single-day decline since Feb 13, when data showed consumer prices also increased more than expected in January.

Market expectations for the timing of the Fed’s first rate cut were slightly tempered, pricing in a 68 per cent chance of a cut of at least 25 basis points in June, according to LSEG’s interest rate probability app, down from 72 per cent on Tuesday before the data.

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Lower rates boost the appeal of non-yielding bullion.

The inflation reading gave a push higher to US 10-year Treasury yields and the US dollar. The 10-year Treasury yield got an extra lift after weak demand at the Treasury’s auction of US$39 billion of the benchmark note.

Elsewhere, Ukraine pounded targets in Russia on Tuesday with dozens of drones and rockets in an attack that inflicted serious damage on a major oil refinery and sought to pierce the land borders of the world’s biggest nuclear power with armed proxies.

Spot platinum fell 0.1 per cent to US$923.70 per ounce, palladium dropped 0.7 per cent to US$1,034.61 and silver shed 0.1 per cent to US$24.14. REUTERS