Gold held steady close to a four-month high

The precious metal prices held steady close to a four-month high on May 19. Gold was supported by a weaker dollar, ahead of minutes from the U.S. Federal Reserve’s last policy meeting that are anticipated to throw light on policymakers’ view on inflation.

Spot gold traded at $1,866.54 per ounce after reaching its peak since January 29 at $1,874.80 in the prior session. Meanwhile, U.S. gold futures were steady at $1,868.

According to DailyFX currency strategist Ilya Spivak, gold rose aggressively since the start of the week around the narrative that we could see inflation pick-up. Spivak added that against that backdrop, we’ve seen stronger commodity prices in general and a softer greenback.

The U.S. dollar index held close to a near three-month low versus its competitors, making the yellow metal more affordable for other currency holders.

Gold prices have increased nearly $190 or more than 11% after dropping to a nine-month low in early March. Notably, gains was driven by a pullback in the American dollar and inflation expectations as gold is seen as a hedge against inflation.

Market participants are awaiting the release of minutes from Fed

Another essential thing to mention is that worries over increasing inflation intensified after U.S. consumer prices in April increased 4.2% on-year, the fastest rise in more than a decade.

Meanwhile, market participants are awaiting the release of minutes from the U.S. Fed’s April 27-28 policy meeting at 1800 GMT.

The U.S. central bank has pledged to maintain interest rates low until the economy reaches full employment. Fed officials have repeatedly maintained they anticipate any surge in inflation to be temporary.

Among other precious metals, Silver declined by 1% and traded at $27.93 per ounce. The white metal moved further away from a more than three-month peak hit on May 18.

Meanwhile, palladium increased by 0.1% and settled at $2,905.78, and platinum fell by 0.3% to $1,215.