Gold prices firmed above the key $1,900 U.S. level on Friday, hitting their highest since late April after a surprise decline in U.S. consumer prices boosted bets for slower Federal Reserve interest rate hikes.
Spot gold was up 0.4% at $1,905.19 per ounce. The metal has risen 2.1% so far in the week, heading for a fourth straight weekly gain.
U.S. gold futures rose 0.5% to $1,907.90.
Gold prices rose as much as 1.3% on Thursday to cross the $1,900 per-ounce threshold for the first time since early May 2021, after data showed U.S consumer prices fell for the first time in more than 2-1/2 years in December.
Bullion was also supported by comments from Fed policymakers that the central bank could scale back the pace of its interest rate hikes as inflation eased further in December. However, they cautioned rates were likely to remain higher for longer.
Helping bullion further, the U.S. dollar edged lower. A weaker greenback makes the dollar-priced metal cheaper for buyers holding other currencies.
