Gold broke through the $2,040 price level for the first time since March 2022, after receiving support from the continued weakness of the US dollar.
In the Asian session, the precious metal strengthened at $2,047 per ounce, while gold futures rose to $2,061 per ounce.
Gold is seen moving closer to its March 2022 high of $2,070, and its all-time high (ATH) of $2,074 per ounce.
The release of producer inflation data added support for gold, after readings showed US producer prices fell sharply in March.
At its lowest since January 2021, annual producer inflation was reported to have risen 2.7% last month, down from 4.9% recorded in February.
This shows that price pressure in the US is easing, coupled with the release of consumer inflation data which also declined to 5% in March compared to 6% previously.
As a result, the market strengthened confidence that the Federal Reserve (Fed) will stop its tightening soon.
The US dollar which lost more severely to a 2-month low against major currencies gave impetus to gold to continue to strengthen.
