Spot gold was 0.7% higher at $1,744.33 per ounce by 12:20 p.m. EDT (1620 GMT), after earlier dipping to $1,722.67, its lowest mark since April 5. US gold futures rose 0.7% to $1,743.90.
“We needed to see some inflation to get gold moving and we saw it this morning with that CPI number,” said Bob Haberkorn, senior market strategist at RJO Futures, adding that a weaker dollar and retreating yields supported prices further.
US consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation.
The US dollar slipped to three-week lows after the data, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also drifted lower.
Further supporting safe-haven gold were concerns raised by US health officials’ decision to recommend a pause in the use of Johnson & Johnson’s COVID-19 vaccine, analysts said.
“At the moment, we need to see a decisive breakout above $1,765 in order to spark another wave of buying up to $1,800,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
“The $1,750 level has been a strong resistance, so we’re getting up near that level,” he said, adding that geopolitical risk tied to news of Iran stepping up its nuclear enrichment had also sparked a lot of buying of gold and silver.
Silver rose 2.1% to $25.36 per ounce, while palladium gained 0.5% to $2,689.67 after climbing to its highest level since March 18 at $2,710.
Platinum fell 1.1% to $1,157.31 per ounce, having earlier dipped to its lowest price in about two weeks at $1,155.