Gold prices see some selling pressure as US CPI rises 0.2% in February

Gold is seeing modest selling pressure after February US CPI came in in line with expectations, reinforcing the view that the Fed may stay on hold longer. Spot gold was last cited at $5,178.10/oz (-0.24% on the day), with the market “struggling to hold the line” near $5,200 as investors weigh sticky inflation versus a still-contained core trend. Headline CPI rose 0.3% m/m in February (after 0.2% in January), with annual CPI unchanged at 2.4%. Core CPI rose 0.2% m/m (matching January), while annual core held steady at 2.5% for a third straight month—signaling no fresh acceleration in underlying inflation. Shelter remained the largest contributor (shelter index +0.2% m/m), while food rose 0.4% and energy rose 0.6%. A key risk flagged by commentators is that the CPI data is backward-looking relative to escalating Middle East conflict: Chris Zaccarelli (Northlight Asset Management) noted the report predates the Iran war, arguing the Fed is likely to remain on hold longer as it monitors whether inflation expectations become embedded amid supply-chain and oil-market disruptions tied to joint US-Israel operations against Iran. Near-term catalysts for gold are follow-through in energy prices, any repricing of rate-cut expectations, and additional inflation prints that capture wartime supply effects—key for whether $5,200 holds or sellers press the market lower.