Gold Price Surges as Fed Rate Hike Fears Recede

Gold prices rebounded on Friday as expectations of a Federal Reserve interest rate hike continued to fade following the latest US inflation readings.

The spot price of gold rose by as much as 1% to nearly $4,400 an ounce, marking a recovery from profit-taking in the previous session.

Gold's recent surge was also fueled by renewed hopes of peace in the Middle East and a series of US economic reports that eased concerns over an immediate Fed rate hike.

The threat of prolonged inflation stemming from the US-Iran war had previously raised expectations of aggressive monetary tightening, contributing to gold's months-long slump.