Bullion tips : Today, Bullion metal Gold hovered below a 3-1/2-mnth high after strong US(United States) inflation data supported the dollar, but the metal was set to post its highest weekly bounced in four weeks on bets the Fed Reserve will not increase interest rates current year.
Spot gold was steady at $1,181.80 an ounce by 0040 GMT. It had strike a 3-1/2-month high of $1,190.63 in the preceding session, but closed the day lower.
The metal snapped a four-day rally on yesterday after data showed a surprise 0.2 per-cent rise in the Sep month US core consumer price index, boosting the year-on-year gain to 1.9 per-cent and pushing it closer to the Fed's 2 per-cent goal. The data gave some relief to the dollar, which has been battered by a run of poor US(United States) indicators, helping it move away from seven-week lows hit earlier in the week.
But gold was on track for a 2 per-cent weekly jump as markets believe recent weak US data in the backdrop of sluggish data out of China would prompt the Fed to stand pat on rates until next year. Low interest rates provides Gold benefits which cut the opportunity cost of holding non-yielding assets.
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