Gold rises with the support of bets on reducing the pace of US interest rate hike

 Gold prices rose more than one percent on Tuesday to their highest level in more than five months after data showed a smaller-than-expected rise in US consumer prices, reinforcing expectations that the Federal Reserve (US central bank) will reduce the pace of interest rate hikes.

In spot transactions, gold rose 1.7 percent to 1,810.98 dollars per ounce at 1844 GMT, after earlier hitting its highest level since June 30.

US gold futures rose 1.9 percent to 1,825.50 dollars.

Bob Haberkorn, chief market strategist at RBC Capital Markets, said.JH.Or futures "gold and silver are rising strongly with the support of buying on them as a safe haven, and also due to expectations of a possible slowdown in interest rate hikes".

Consumer prices in the United States rose slightly in November amid falling prices for gasoline and used cars, which led to the smallest annual increase in inflation in almost a year.

Following the release of the CPI data, the dollar index fell more than one percent to the lowest level in about six months, which makes gold less expensive for holders of other currencies. Benchmark ten-year U.S. Treasury bond yields also fell.

The Federal Reserve is scheduled to issue a statement outlining its policy at 1900 GMT on Wednesday, followed by a press conference by Bank Chairman Jerome Powell.

For other precious metals, silver in spot transactions rose 1.9 percent to 23.76 dollars per ounce, platinum jumped 3.4 percent to 1035.63 dollars, while palladium rose 2.4 percent to 1931.76 dollars.