Gold climbs on dip buying, Fed hike bets rise after US inflation data

Gold prices firmed over one percent on Friday, finding a short-term floor. Strong United States inflation data lifted expectations of a Federal Reserve rate hike next week, with market participants having already priced in a seventy percent hike before the data release. The expectation of a rate hike has supported gold prices, with the metal seeing a significant increase in demand in top consumer China, while investment demand remained strong in India despite subdued demand due to volatile prices. Silver and platinum also saw gains, indicating a positive sentiment in the market. The rise in gold prices is seen as a response to the Fed's tightening monetary policy, which is expected to impact interest rates and currency values. The data release also highlighted the need for inflation control, with the Fed likely to take action to address rising prices. The Fed's decision on interest rates is expected to be announced next week, and market participants are watching the data closely for any signs of a rate hike. The inflation data has also raised concerns about the impact of rising interest rates on the economy, with some experts warning of a slowdown in economic growth. The Fed's move is seen as a way to combat inflation, which has been rising in the US. The data release has also highlighted the importance of inflation control, with the Fed likely to take action to address rising prices.