The gold -priced metal traded up the highest in a month as rising consumer prices increased its attractiveness as an inflation hedge.
In the Asian session, gold strengthened at around $ 1,979 an ounce after hitting its highest level since March 14 at $ 1,981 during the previous session. Gold futures were stable at $ 1,980 an ounce.
The U.S. dollar and 10 -year U.S. bond yields, meanwhile, eased, benefiting the yellow metal to maintain gains from U.S. inflation data readings.
The latest data on Wednesday showed US inflation soaring higher in March thus reinforcing expectations for a 50 basis point rate hike by the Federal Reserve (Fed) at next month’s policy meeting.
This was followed by the strengthening of consumer prices from the UK which reached 7% in March which added pressure on the government to control the cost of living from rising further.
Meanwhile, the strengthening of the gold safe-haven was also supported by concerns over the escalation of the Ukrainian conflict. Russian President Vladimir Putin has said that peace talks are currently at a stalemate and he will resume his military operations.
