Gold rises as dollar softens after US inflation data

Gold prices rose on Wednesday, as the US dollar fell against most currencies, after the release of US inflation data.

The US consumer price index rose by 0.5% in December, more than forecasts of 0.4%, and the core reading (excluding energy and food prices) rose 0.8%. 

Based on the data, the US consumer price inflation rose to 7%, which is the highest level in the US since 1982.

Federal Reserve Chairman Jerome Powell said yesterday that the central bank is ready to accelerate rate hikes to ease the rising inflation.

The dollar index fell against a basket of major currencies by 0.7% to 94.9 points as of 19:54 GMT, after hitting a high of 95.6 points and a low of 94.9 points.

Gold spot prices rose 0.5% to $1,827.9 an ounce, as of 19:55 GMT.