Gold price at 5-month high

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, reports Reuters.

Spot gold rose 0.8 per cent to $1,865.18, erasing its losses from the previous session. US gold futures gained 0.7 per cent, trading at $1,867.30 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 per cent, the highest in over three decades.

Bullion's latest rally comes despite a stronger dollar, which was fueled by bets for early interest hikes by the US Federal Reserve.

The dollar - which contends with gold as a safe store of value - touched its highest since July 2020 this week, also bolstered by better-than-expected retail data.