Gold hit alltime high of 2,365.09 per ounce on Tuesday
U.S. CPI and Fed minutes due on Wednesday

April 10 Reuters Gold prices held steady on Wednesday near a record high hit in the previous session as a favourable mix of emerging inflationary risks and ongoing geopolitical tensions underpinned the safehaven metal.

Spot gold was little changed at 2,355.29 per ounce, as of 0719 GMT, after hitting a record high of 2,365.09 on Tuesday. U.S. gold futures gained 0.5 to 2,373.50.

Gold is diverging from its traditional key drivers … due to geopolitical tensions, central banks in emerging markets are stockpiling gold to diversify the risk, some volatility in Chinese currency and the emergence of inflation risk are also driving prices right now, ANZ commodity strategist Soni Kumari said.

The U.S. consumer price index CPI report for March due at 1230 GMT is expected to show that the yearonyear CPI rose to 3.4, while the core CPI is seen slowing to 3.7, according to a Reuters poll. USCPNXECI USCPNYECI

If inflation number comes on the higher side there could be some pushback again for ratecut expectations, especially since after the strong jobs data the expectation of rate cuts has shifted from June to July, Jigar Trivedi, a senior analyst at Reliance Securities, said.

Higher interest rates reduce the appeal of holding nonyielding gold.

Markets also await the minutes of the U.S. Federal Reserve39;s March meeting due at 1800 GMT. The Fed had held interest rates steady at…