Gold prices rise as US consumer prices boost its allure against inflation

Gold gained on Friday as a rise in US consumer prices in November boosted its allure as a cushion against inflation, despite expectations that the data may prompt the Federal Reserve's to hasten interest rate hikes.

Spot gold was up 0.5 per cent to $1,783.91 per ounce at 09:10 a.m. ET (1410 GMT). US gold futures rose 0.6 per cent to $1,786.90.

“The potential for interest rate hikes does drag at the heels of the gold market, but the underlying fundamental theme is the inflationary pressures, which will be supportive," said David Meger, director of metals trading at High Ridge Futures.