Gold ends firmer after US inflation data release

Gold prices ended in the green today, April 12, as investors assessed US inflation data that showed a smaller-than-expected jump in prices.

The US Consumer Price Index (CPI) increased by 0.1% in March over the prior month, against expectations for a 0.3% rise, suggesting that the Federal Reserve will likely pause interest rate hikes.

Accordingly, Goldman Sachs analysts revoked their expectations for an interest rate hike by the US central bank next June. However, they kept their view of raising interest rates at the rate-setting committee's upcoming May 2-3 meeting.

In terms of trading, gold for June delivery climbed 0.30%, or $5.90, to $2,024.90 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.70% to 101.53 points at 8:58 pm Makkah time.