Gold managed to post gains after readings of published US inflation data showed an increase to the highest level since December 1981 in March.
This has driven gold trading to rise higher to $ 1,973 per ounce, before declining slightly to trade around $ 1,965 per ounce in the Asian session.
The US annual inflation rate jumped to 8.5% in March from 7.9% recorded the previous month. The increase was driven by surges in energy prices, namely gasoline and fuel affected by the Russian -Ukrainian wars.
However, core inflation, which does not include food and energy prices, fell short of expectations with an increase of 6.5% year -on -year and 0.3% on a monthly basis.
This makes investors see inflation in the US has reached its peak and the Federal Reserve (Fed) is likely to reduce its aggressive move in tightening.
The U.S. dollar and 10 -year U.S. bond yields eased following the issuance, giving the golden yellow metal a chance to continue to shine at four -week highs.
Investors will next focus on the publication of UK consumer inflation data and US producer price index (PPI) data today to determine the further movement of gold.
