Gold commodities found support to trade higher in the Asian session following encouraging US inflation data in November.
The annual US consumer price (CPI) rose 6.8% from 6.2% previously recorded, the highest figure ever recorded since 1982.
Meanwhile, on a monthly basis, inflation showed a slightly slower reading by rising to 0.8% from 0.9%. The core inflation reading was in line with expectations with a slight decline of 0.5% from 0.6% previously.
In line with this encouraging reading, demand for the precious metal gold continued to increase as investors viewed it as a hedge to inflation.
In the Asian session, spot gold traded higher at around $ 1,785 per ounce, while gold futures were positive at $ 1,786 per ounce.
For now, gold is taking advantage of the opportunity to rise while awaiting the outcome of this week’s FOMC policy meeting which is expected to announce a reduction in accelerated bond purchases.
Meanwhile, the uncertainty and risk of the Omicron variant also gave impetus to gold trading as it had the potential to affect the global economic recovery amid rising inflation.
