GOLD edged higher on Wednesday on safe-haven demand and as a retreat in oil prices calmed inflation worries, reviving expectations for potential Federal Reserve rate cuts this year as investors awaited U.S. CPI data that may offer more cues.
Spot gold was up 0.1% at $5,198.29 per ounce, as of 0641 GMT. U.S. gold futures for April delivery fell 0.7% to $5,206.40.
Oil prices dropped below $90 per barrel amid reports that the International Energy Agency proposed the largest release of oil reserves in its history to curb surging prices.
"With these (inflation) concerns having eased... hedging and safe-haven attributes (of gold) have once again come to the fore. So, I think from current levels we remain optimistic," said Nikos Kavalis, Singapore managing director of Metals Focus.
...
