The yellow gold metal rebounded above $ 1,800 an ounce after the release of weaker -than -expected U.S. inflation data prompted sales of the U.S. dollar and bond yields to decline lower.
In the Asian session, spot gold traded steady at $ 1,803 per ounce, while gold futures declined slightly at $ 1,805 per ounce.
Gold prices have touched a two -week low of $ 1780 an ounce before rebounding to a high of $ 1,808 an ounce during the New York session.
Although gold prices were supposed to decline due to slow inflationary growth, but due to declining US bond yields, it has provided an opportunity for the precious metal to rise.
U.S. consumer prices unexpectedly rose at a slower pace in August, with core inflation only registering a small increase of 0.1%, raising market doubts over the stimulus cuts by the Federal Reserve (Fed) will be implemented this year.
However, this weakness only led to a temporary depreciation for the US dollar which saw the king of the currency rise again in line with other safe-haven currencies due to the gloom of the US stock market.
Gold still held above $ 1,800 an ounce, despite the US dollar’s rebound in the Asian session.
