Gold rose to a near six-month high as weaker US inflation readings bolstered expectations for the Federal Reserve (Fed) to slow interest rate hikes.
Most recently, the annual US consumer price index (CPI) was reported to have increased 7.1% in November, which was lower than the forecast increase of 7.3%.
The recorded reading also marked a decline from October's reading of 7.7%, marking a 5-month decline from its peak recorded in June of 9.1%.
This in turn spurred gold prices to surge from a one-week low to a new high of $1,824 an ounce once the data was released.
However, in today's Asian session the yellow metal pared some gains to trade at $1,810 per ounce as a sign of investor caution ahead of the FOMC policy meeting which takes place early Thursday morning.
The string of inflation numbers continued to ease, with investors reinforcing expectations for a rate hike of 50 basis points at the Fed's latest meeting.
