02:00 PM EDT, 03/12/2025 (MT Newswires) -- (Updates prices.)

Gold traded higher mid-afternoon on Wednesday after a report showed U.S consumer prices advanced less than expected last month, while safe-haven buying continues amid fresh U.S. tariffs on aluminum and steel.

Gold for April delivery was last seen up US$26.00 to US$2.946.90 per ounce.

The rise follows the release of the February Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics that showed inflation slowed to a 2.8% annualized rate last month, down from 3.0% in January and under the FactSet consensus estimate for a rise of 2.9%. Core CPI, excluding volatile food and energy prices, rose 3.1%, down from 3.3% a month earlier and less than the consensus estimate for a 3.2% rise.

The drop shows the U.S. has yet to feel any inflationary effect from U.S. President Donald Trump's tariff policies, with 25% levies on imports of steel and aluminum taking effect today. A similar tariff on goods imported from Canada and Mexico will kick in on April 2 should Trump not back off again.

"Gold ... continues to attract haven demand amid Trump's fluctuating tariff plans, recession worries and the recent dollar weakness," Saxo Bank noted.

The dollar rose off early weakness following the inflation report, with the ICE dollar index last seen up 0.06 points to 103.48,after earlier touching 103.35, the lowest since Nov. 5. Treasury yields rose, with the U.S. two-year note last seen paying 3.987%, up 3.6 basis points, while the yield on the 10-year note was up 1.8 points to 4.303%.