Gold reacts to US inflation data with price fluctuations.

Gold prices gained as the US dollar retreated after US inflation readings came in mostly as expected, reinforcing expectations for a pause in the Federal Reserve's interest rate hikes. The case for the US central bank to end its rate hiking campaign got a little stronger after the report. While gold is considered a hedge against inflation, rising interest rates dull non-yielding bullion's appeal. Concerns about a potential US debt ceiling default are keeping investors from taking on higher risk, and so gold remains well supported at this time down to $1,970.