Gold price holds near 5-month high as inflation pressures remain

Gold prices bounced back on Wednesday, holding near their highest levels since June, as inflation worries continue to push investors toward the safe-haven metal.

Spot gold rose 0.8% to $1,865.18/oz by 11:30 a.m. ET, erasing its losses from the previous session. US gold futures gained 0.7%, trading at $1,867.30/oz in New York.

“The underlying support for gold and silver remains the inflationary pressures we continue to see in the market,” said David Meger, director of metals trading at High Ridge Futures, in a Reuters report.

Gold prices jumped by more than $50/oz following the latest US inflation data, which showed a sharply higher CPI for the month of October with a headline rate of 6.2%, the highest in over three decades.