Gold Recovers Amid US Inflation Data Boosting Rate Hike Bets

Gold prices surged more than 1% on Friday after rebounding from recent losses. The precious metal found support despite strong US inflation data that boosted expectations of a Federal Reserve rate hike next week.

Spot gold rose 1.6% to $4,385.14 per ounce by 9:23 a.m. EDT (1323 GMT). However, it was down about 1% for the week so far.

Tai Wong, an independent metals trader, said '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.'