Gold Surges to Near Record High Amid Fed Hike Fears

Gold prices are on the rise, flirting with the $4,400 mark due to reduced expectations for a US Federal Reserve interest rate hike. Disappointing retail sales and a drop in consumer sentiment have made a rate increase less likely, which is good news for gold as it tends to perform well when rates stay low.

The trend is also being driven by China's central bank buying up gold, helping prices bounce back above $4,000. Strategist Christopher Wong from OCBC notes that technical momentum is starting to look stretched after the recent rebound, but 'Consolidation risks remain around current levels.'

Meanwhile, the US dollar has slipped 0.2%, making gold more affordable for buyers using other currencies and possibly fueling even more demand.