Gold prices rise for fourth day on easing inflation

GOLD PRICES CONTINUE TO RISE, POISED FOR A STRONG WEEK AMID EASING INFLATION CONCERNS.

Gold prices rose for the fourth consecutive session on Friday, supported by evidence that U.S. inflation was easing and concerns about a possible recession in 2023. On Thursday, data showed that U.S. producer price index inflation grew at a slower pace in March, which was followed by data showing that consumer price inflation also eased. These readings reinforced the belief that inflation was subsiding, which could result in a less hawkish Federal Reserve.
Following the data, the dollar declined to a nearly one-year low, while Treasury yields also retreated, both of which supported gold prices. The safe-haven appeal of gold was also bolstered by several warnings of a U.S. recession this year, which could lead to less hawkish action by the Fed.
As of 22:16 ET (02:16 GMT), spot gold rose 0.3% to $2,046.61 an ounce, while gold futures gained 0.3% to $2,060.75 an ounce. Both instruments were poised for a fourth straight day of gains and were headed for a weekly increase of nearly 2% each.
Gold has been on a surge over the last month, driven by safe-haven flows triggered initially by fears of a banking crisis. While regulatory intervention helped to ease concerns of a broader crisis, the collapse of several U.S. banks led to the pricing in of a less hawkish stance by the Fed and a potential recession this year due to economic pressure from high-interest rates.

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