**********On Thursday (February 13th), spot gold fluctuated narrowly in the Asian market, currently trading around $2901.88 per ounce. Gold prices hit bottom and rebounded on Wednesday, falling to around $2863.99 per ounce during trading due to strong US CPI data,Federal ReservechairmanPowellThe resurgence of the temporary non interest rate cut viewpoint has prompted some bulls to take profits, but gold prices were quickly supported by bargain hunting and safe haven demand, closing at $2904.06 per ounce. US President Trump's new tariff policy has raised concerns about a global trade war.

Federal Reserve Chairman Powell reiterated in congressional testimony on Wednesday that the Fed is not in a hurry to cut interest rates, as pre conference data showed that consumer prices in the United States rose faster than expected in January, indicating no progress has been made on inflation.

On the issue of inflation, we are close to the target, but we have not yet reached it. Today'sInflation data... also illustrates the same issue, "Powell told the House Financial Services Committee." We have made tremendous progress But we haven't fully achieved our goal yet. "

We hope to temporarily maintain policy restrictions, "Powell said, referring to the Federal Reserve's plan to keep the benchmark interest rate unchanged until there is clear evidence that inflation has returned to its target of 2%.

The US Consumer Price Index (CPI) rose 3% year-on-year in January, higher than the 2.9% increase in December, as used car prices surged due to rising accommodation, food, and energy prices.

The inflation rate in January was slightly higher than analysts' expectations, which is likely to make the Federal Reserve more unwilling to further cut interest rates. Currently, policymakers are waiting for signs that price pressures in the economy will continue to ease.

In response to questions from lawmakers, Powell reiterated that he agreed that it was a bit late for the Federal Reserve to start raising interest rates when inflation soared in 2021, but he said, "Considering the final pace of interest rate increases and the subsequent decline in inflation, I am not sure how much difference would be made if we acted earlier."

However, the Federal Reserve is about to review its monetary policy strategy, conduct in-depth research on recent experiences, and "we will be open to criticism and make appropriate and prudent adjustments

The soaring prices of essential consumer goods (gasoline prices increased by 1.8% month on month in January, and food prices for home consumption increased by 0.5%) may also affect public expectations of inflation, which the Federal Reserve believes is crucial for controlling inflation.

The overall consumer inflation rate has risen for four consecutive months, prompting traders to bet that the Federal Reserve will not cut benchmark interest rates again before September, which is now expected to be the only rate cut this year.

US President Trump has once again called for a rate cut on social media, working hand in hand with the tariffs he has already implemented and plans to implement. Treasury Secretary Scott Bessent has repeatedly stated that this comment refers to long-term bond yields, not Federal Reserve policy.

However, long-term interest rates also jumped on the news of inflation. The yield of 10-year treasury bond rose by about 10 basis points, reaching 4.66% on Wednesday.

During his testimony in the House of Representatives, Powell repeated his opening remarks made on Tuesday when he was not in a hurry to testify before the Senate Finance Committee.

Powell testified on Tuesday, saying, 'We don't need to rush into action.'.

The agenda of Tuesday's hearing goes far beyond monetary policy, with lawmakers asking Powell for his views on many issues such as Trump's tariffs, the integrity of the US Treasury's payment system, and the fate of the Consumer Financial Protection Bureau.

David Meger, head of metal trading at High Ridge Futures, said that the latest CPI data is higher than expected, putting pressure on the gold market. Obviously, any expectations in the market for a rate cut later this year have been hit

Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, said: "Although high interest rates have put some pressure on gold, the trend is still positive, and trade concerns continue to drive the market“

After raising steel and aluminum tariffs to 25% earlier this week, advisers to US President Trump are currently finalizing a plan for reciprocal tariffs.

The White House stated that the Trump administration will announce equivalent tariffs on every country that imposes tariffs on US imports before Thursday, which will exacerbate concerns about the expansion of the global trade war and may accelerate US inflation.

Trump's latest round of market stirring tariffs will be announced before Indian Prime Minister Modi's visit on Thursday, White House spokesperson Karoline Leavitt said at a press conference on Wednesday.

Trump had stated on Monday that he would announce equivalent tariffs in the next two days, and he is also considering imposing separate tariffs on cars, semiconductors, and drugs.

Republican Speaker of the U.S. House of Representatives, Johnson, stated on Wednesday that he believes Trump is considering exempting industries such as automobiles and pharmaceuticals. But I'm not sure. You have to wait and ask the White House, "he said. The White House did not immediately respond to a request for comment.

The US President announced on Monday that tariffs will be imposed on all imported steel and aluminum starting from March 12th, shocking the market. The plan has drawn condemnation from Mexico, Canada, and the European Union, while Japan and Australia have stated that they are seeking tariff exemptions.

This news has prompted industries that rely on steel and aluminum imports to compete to offset the expected cost surge.

Last week, Trump imposed an additional 10% tariff on Chinese goods, which took effect on February 4th, and China's countermeasures came into effect this week.

He has postponed the imposition of a 25% tariff on Mexican and Canadian goods until March 4th in order to negotiate measures to ensure US border security and prevent the flow of the drug fentanyl.

Canadian Prime Minister Trudeau told reporters in Brussels that if the United States imposed tariffs on Canadian steel and aluminum imports, some Americans would lose their jobs and the economic growth of the United States would also be affected.

White House trade advisor Peter Navarro downplayed the negative impact of expected tariffs in an interview on Wednesday, stating that the tariffs imposed during Trump's first term did not lead to a surge in inflation, and that export dependent product producing countries typically lower prices to prevent losing market share.

Trade experts say that the structural arrangement of reciprocal tariffs that Trump hopes for poses a huge challenge to his team.

Damon Pike, a trade expert and head of the US branch of accounting firm BDO International, said that given the different tariff rates of the 186 member countries of the World Customs Organization, Trump's envisioned equivalent tariffs would be a daunting task. He said, "This is almost an artificial intelligence project

On this trading day, we also need to pay attention to the January PPI data and changes in the number of initial jobless claims in the United States. In addition, we need to pay attention to the news about the Russia-Ukraine conflict.

On Wednesday (February 12th), US President Trump had phone conversations with Russian President Putin and Ukrainian President Zelensky respectively to discuss the issue of the Ukrainian war, taking an important step towards promoting diplomatic resolution of the conflict. Trump has stated that he may meet with Putin in Saudi Arabia in the future, while emphasizing their shared desire for peace.