Gold notches highest settlement in 5 weeks

Gold alloys

Gold prices consolidated their gains at settlement today, Dec. 11, recording the highest level since the end of trading on Nov. 5 ($2,774.60), after the latest US inflation reading matched the average consensus.

February gold futures spiked by 1.40%, or $38.30, to finish at $2,756.70 per ounce.

The gains of the yellow metal were limited by the 0.3% rise in the US dollar index, which gauges the greenback's strength against a basket of six currencies, to stand at 106.7 points at 10:36 pm Makkah time.

US Labor Department data showed that the consumer price index gained 0.3% on a monthly basis in November and jumped at an annualized rate of 2.7%, in line with analyst expectations.

According to the CME FedWatch Tool, markets are pricing in a 94.9% chance that the Federal Reserve will cut interest rates by 25 basis points at next week's policy meeting, up from 88.9% prior to the US inflation report.