Gold rose to the $2,690 per ounce mark on Wednesday, extending gains from the prior session to its highest in over one month as cooling underlying inflation in the US favored bets of less restrictive monetary policy by the Fed this year.

Core consumer inflation unexpectedly slowed on an annual basis, while headline consumer prices refrained from showing aggressive upside surprises.

The results supported bullion and Treasuries across all durations as progress in disinflation would allow FOMC members to ease monetary restriction, lowering the opportunity cost of holding non-yielding assets.

Consequently, markets anticipated bets of a Fed rate cut to July instead of September.

Concerns of stubborn price growth had recently been magnified by pro-inflationary policies advocated by President-elect Trump, including tariffs on major trade partners and increased deficit spending.

In turn, more support from bullion was capped by signals of a potential rate hike by the BoJ next week.

Source: Trading Economics