Shafaq News / Gold prices hit a one-month high on Wednesday as rising consumer prices boosted its appeal as an inflation hedge, with investors seeming to look past an impending interest rate hike by the Federal Reserve.
Spot gold rose 0.6% to $1,978.21 per ounce by 2:37 p.m. ET (1837 GMT), after touching its highest since March 14 at $1,981.30. U.S. gold futures settled up 0.4% at $1,984.70.
Gold seems to be ignoring rising U.S. rates and is "singularly focused on inflation", said Edward Meir, an analyst with ED&F Man Capital Markets.
Data showed on Tuesday that U.S. monthly consumer prices surged in March, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month as it seeks to tackle inflation.
Gold is considered a hedge against inflation and geopolitical risks. However, rising U.S. interest rates will raise the opportunity cost of holding non-yielding bullion and boost the greenback in which it is priced.
Investors also boosted equities after a week-long slump amid optimism on strong growth stocks despite inflation forecasts.
The dollar index touched a two-year high during the session, buoyed by hawkish comments by Fed officials, before giving up some of those gains.
