Gold Prices Rebound on US Inflation Data and Rate Hike Expectations

Gold prices rebounded on Friday, gaining over 1% after recent losses. Spot gold rose to $4,363.01 per ounce by 01:40 p.m. EDT (1740 GMT), but was still down about 1.5% for the week.

The metal's recovery is attributed to strong US inflation data, which bolstered expectations of an interest rate hike by the Federal Reserve next week.

Independent metals trader Tai Wong noted that 'Gold is recovering rapidly after a brief dip, as CPI data may be cementing expectations of a Fed rate hike next week. The volatility is somewhat muted, as market had a hike 70% priced in.'