Global gold prices recorded an increase over the past week thanks to a decline in dollar and Treasury bond yields amid growing expectations that the Federal Reserve has finished tightening its monetary policy.
Prices in spot trading at the last close reached $1,980.13, with the prices of the precious metal jumping by about 2.3% during the week.
US gold futures settled down 0.1% to $1,984.70 per ounce.
Data released this week reinforced the fact that the Federal Reserve has likely finished raising interest rates.
Markets now expect the Fed to cut interest rates as early as May next year after data indicated a slowdown in inflation.
Economic data revealed a slowdown in both the consumer and producer price index in America, which suggested expectations that the Federal Reserve would end the current monetary tightening cycle.
The dollar fell to low levels with the issuance of a surprisingly weaker inflation reading in the United States, which reinforced bets that the US Federal Reserve has reached the end of its monetary policy tightening cycle.
At the same time, the World Gold Council said that China's appetite for gold will remain strong until the end of 2023, while safe haven prices rose to a record level in the country in light of the strongest demand for it in more than two years.
