Gold nears 5-month peak as inflation worries boost appeal

Gold prices neared a five-month high touched in the previous session, after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation.

Spot gold was up 0.6% at $1,861.39 per ounce. U.S. gold futures for December delivery settled 0.8% higher at $1,863.90 per ounce.

“The market is spooked with yesterday’s CPI data coming in as high as it was. Traders are looking at gold as being a safety asset, as a hedge against this inflation risk,” said Bob Haberkorn, senior market strategist at RJO Futures.