Gold prices gain over 1% upon settlement after US inflation data

Gold prices rose to the highest level in nine months at settlement of trading today, Jan. 12, after the release of US inflation data.

US annual inflation slowed to 6.5% last December, compared to 7.1% in the month before. Further, the Consumer Price Index (CPI) shed 0.1% on a monthly basis.

Financial market investors expected the Federal Reserve to pare down its interest rate hike to 25 basis points (bps) at the central bank’s upcoming Feb. 1 meeting.

Upon settlement, gold for February delivery jumped 1.1%, or $19.90, to $1,898.80 an ounce — the highest since April 2022.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, plunged by about 1% to reach 102.151 points at 9:55 pm Makkah time.