Gold prices jumped more than 2% on Tuesday, driven by softer-than-expected US inflation figures that have intensified market expectations for a dovish pivot from the Federal Reserve.
The rally marks a significant acceleration in the precious metal's recent recovery, as investors recalibrate their views on the US interest rate trajectory.
The surge follows a period of consolidation for gold, which had recently touched a two-week low of $3,983.
The surge follows a period of consolidation for gold, which had recently touched a two-week low of $3,983.29 per ounce.
Over the preceding sessions, spot gold had already begun to regain footing, climbing 0.3% to $4,013.93 on Monday and rising a further 0.6% to $4,023.77 by midday Tuesday.
The latest inflation data provided the catalyst needed to break through recent resistance, pushing prices sharply higher as the market digested the implications for monetary policy.
The core driver of the move is the shifting outlook on Federal Reserve policy.