Gold hit a record-high $2,365.09 on Monday, April 9, fueled by buying momentum and geopolitical risks, but fell back on Wednesday following higher-than-expected US inflation data.

The U.S. Bureau of Labor Statistics said the Consumer Price Index in March rose to 3.5%, a point higher than the 3.4% expected and February’s reading of 3.2%. Persistently high prices forced traders to shift bets on the Federal Reserve lowering interest rates from June to September, resulting in the US 10-year Treasury rising to 4.5% and the US dollar index surging to 105. (FX Street, April 10, 2024)

Still, spot gold is up 14% this year, following a 13% gain in 2023. As of writing on Thursday, April 11, gold was trading at US$2,354.60/oz, a strong performance given the headwinds facing the precious metal.