Gold climbs further beyond $1,900, the highest since May 2022
Gold price continues scaling higher on Friday and touches a fresh multi-month peak.
Bets for smaller Fed rate hikes continue to weigh on the USD and remain supportive.
A sustained strength above $1,900 supports prospects for a further appreciating move.
Gold price catches fresh bids during the early part of the European session on Friday and appreciates further beyond the $1,900 round-figure mark. The XAU/USD now trades with gains of over 0.60% for the day and is currently placed just below the $1,910 level.
Gold price catches fresh bids during the early part of the European session on Friday and appreciates further beyond the $1,900 round-figure mark. The XAU/USD now trades with gains of over 0.60% for the day and is currently placed just below the $1,910 level, or its highest level since May 2022.
The weaker US Dollar continues to benefit the gold price
The US Dollar (USD) remains depressed near a seven-month low amid growing acceptance that the Federal Reserve (Fed) will soften its hawkish stance amid signs of easing price pressures. A weaker Greenback turns out to be a key factor benefitting the US Dollar-denominated gold price. In fact, inflation in the United States (US), as measured by the Consumer Price Index (CPI), dipped 0.1% in December, marking the first decline since May 2020. Adding to this, the yearly rate decelerated from 7.1% rate in November to 6.5% or the lowest level since October 2021. Furthermore, core inflation, which excludes food and energy prices, rose 0.3% and slowed to the 5.7% YoY rate from 6.0% in November.
