Gold Rebounds on Fed Hike Expectations Amid Strong US Inflation Data

Gold prices rebounded on Friday, climbing over 1% to $4,385.14 per ounce as investors snapped up the metal after its recent losses.

The rise in gold comes despite strong US inflation data, which lifted expectations of a Federal Reserve rate hike next week.

Tai Wong, an independent metals trader, said that 'gold is recovering rapidly after a brief dip' and that 'the volatility is somewhat muted, as market had a hike 70% priced in.'

The Consumer Price Index increased 0.4% last month, while the 12-month inflation rate remained at 3.4%. Higher oil prices stoke inflation fears and bolster expectations of the Fed raising interest rates.