The golden yellow metal soared to a five -month high after being shocked by a significant spike in U.S. inflation in October.
The US annual consumer price index (CPI) jumped to its highest level since 1990 with a 6.2% increase last month, driven by increases in fuel and food prices.
Gold, which is usually considered a hedge to rising inflation, continued to soar as high as touching the $ 1,868 per ounce price level after the data was released in the New York session.
However, in the Asian session, the precious metal depreciated slightly by trading around $ 1,844 per ounce. Gold futures traded at $ 1,847 an ounce.
At the same time, the king of the U.S. dollar and 10 -year U.S. treasury yields also showed an upturn following such data that may have been driven by tighter policy expectations by the Federal Reserve (Fed).
The surge of the US dollar to a one -year high caused gold price movements to be slightly limited to continue higher.
Earlier, Chairman Jerome Powell reiterated his view that current price pressures are temporary and have to do with the recovery from the Covid-19 pandemic.
