Gold broke $1,900 per ounce, the first hit since 8 months post a slump in the US CPI for December, giving Fed a chance to ease its hawkish rate hikes in combating inflation.

The U.S. gold futures contract advanced by 4% since the beginning of 2023. Today's session saw a surge at $1,905 for February gold touching the highest level in 8 months ago.

The spot gold price that was closely monitored edged up by 1.3% at $1,900.54.

Based on the Labor Department report, the consumer prices climbed by 6.5% since the end of 2021, the enhanced inflation figures bolstered hopes that Fed may slow down the pace of the interest rate raises.

Analysts' annual projections for the CPI quite matched the released figures.

The CPI touched its loftiest level in 40 years last year in June by 9.1% on annual basis which way exceeded Fed's inflation goal at 2%. Accordingly, in order to curb the soared prices, Fed rose the rate by 425bp for 7 seven consecutive months.