Gold prices edge higher as inflation cools

Gold prices rose higher during Asian trade on Thursday, reaching a than two-month high, buoyed by subdued UK inflation figures that increased speculation about global interest rates nearing their peak. Additionally, a slight weakness in the dollar provided further support to the precious metal.

At the time of writing, spot gold is trading at $1,981 an ounce, approaching the sought-after milestone of $2,000.

Wednesday’s release of UK consumer inflation data fell below expectations, leading the market to believe that the Bank of England may be on the verge of concluding its cycle of rate hikes. This trend echoes the recent decline in US inflation, which intensified predictions that the Federal Reserve was also approaching the year’s peak interest rates.