Gold prices rose during early trading on Wednesday, approaching the record levels reached in the previous session, while silver hit an all-time high, surpassing $90 an ounce, as weaker-than-expected US inflation readings boosted bets on interest rate cuts.
Price update
Gold rose 0.6 percent in spot trading to $4,615.85 an ounce by 0211 GMT. It had hit a record high of $4,634.33 on Tuesday.
U.S. gold futures for February delivery rose 0.5 percent to $4,624, according to Reuters data.
The U.S. consumer price index rose 0.2 percent month-on-month and 2.6 percent year-on-year in December, boosted by higher rent and food costs.
The rise came as the impact of some government-related distortions that had reduced inflation in November eased, but it was still below analysts' expectations of increases of 0.3 percent and 2.7 percent respectively.
US President Donald Trump also welcomed the inflation figures, reiterating his pressure on Federal Reserve Chairman Jerome Powell to cut interest rates.
Investors and major brokerage firms such as Goldman Sachs and Morgan Stanley expect two interest rate cuts of 25 basis points each this year, with the earliest cut expected in June.
On the geopolitical front, Trump on Tuesday urged Iranians to continue protesting, saying that help was on its way to them, amid the largest protests Iran has seen in years.
As for other precious metals, silver rose in spot trading, surpassing $90 an ounce for the first time. Platinum climbed 3.5 percent to $2,405.30, its highest level in a week, after hitting a record high of $2,478.50 on December 29.
Palladium rose 1.8 percent to $1,873.
