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Gold climbs to 9-month highs above $1,900 an ounce

FILE PHOTO: A 99.99% pure gold bar is melted at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia.  March 10, 2022. REUTERS/Alexander Manzyuk/File
FILE PHOTO: A 99.99% pure gold bar is melted at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia. March 10, 2022. REUTERS/Alexander Manzyuk/File

By Kavya Guduru

Jan 13 (Reuters) – The price of gold broke above the key $1,900 mark on Friday, hitting its highest level since late April, after a surprise drop in U.S. consumer prices sent bets lower. slowdown in interest rate hikes by the Federal Reserve.

* Spot gold was up 0.4% at $1,905.19 an ounce as of 1008 GMT. The metal is up 2.1% so far this week, heading for its fourth straight weekly gain. US gold futures were up 0.5% at $1,907.90.

* “Should the Federal Reserve fail to counter market expectations that US rate ceilings are near and that an eventual rate cut is still on the table, that could tempt gold bulls to focus their You look at the $2,000 level,” said Han Tan, chief market analyst at Exinity.

* Gold prices rose as much as 1.3% on Thursday to cross the $1,900 per ounce threshold for the first time since early May 2021, after data showed US consumer prices fell by First time in over two and a half years in December.

* Bullion was also supported by comments from Fed policymakers that the central bank may slow its rate hikes as inflation slowed further in December. However, they warned that rates would likely stay higher for longer.

* Lower interest rates are often beneficial to bullion as they lower the opportunity cost of holding a non-interest-bearing asset.

* The dollar was lower, further helping bullion as a weaker greenback makes the metal cheaper for non-currency buyers.

* Among other precious metals, spot silver was down 0.1% at $23.76 an ounce, while platinum was up 0.1% at $1,068.42. Both metals were heading for a weekly drop. Palladium was down 0.6% at $1,781.00.

(Reporting by Kavya Guduru in Bengaluru; Editing in Spanish by Ricardo Figueroa)

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