Gold prices surge on expectations of Fed rate hike pause and mixed US inflation data.

Gold prices hit session highs as US CPI sees annual inflation rising 5%, down sharply from 2020 highs. The data was weaker than expected, giving the Federal Reserve room to end its aggressive monetary policy tightening, even if there is one more hike still in play. Although markets see solid potential for the Federal Reserve to raise interest rates by 25 basis points next month, expectations have come down sharply in initial reaction to the inflation data. Shifting expectations surrounding the Federal Reserve's monetary policies continue to support gold prices.