Gold prices rose to their highest level in more than five months on Tuesday as rising price pressures burnished the metal's appeal as an inflation hedge and offset a strong dollar.
Spot gold rose 0.6% to $1,873.67 per ounce by 1040 GMT, while U.S. gold futures climbed 0.5% to $1,875.70.
The metal has added more than 2% since last Tuesday after data showed U.S. consumer prices posted the biggest annual gain in 31 years last month.
"The notion that U.S. inflation has yet to peak should keep bullion well bid, as long as the Fed doesn't veer from its patient approach to any rates lift off," said Han Tan, chief market analyst at Exinity.
Gold's gains came despite the dollar holding close to a 16-month high and benchmark U.S. 10-year Treasury yields steadying near a three-week peak. A stronger dollar increases gold's cost to buyers holding other currencies.
"Gold is able to resist the headwind of a strong dollar and could rise to $1,900 by the end of the year," Commerzbank analyst Daniel Briesemann said.
Investors now eye U.S. retail sales data due at 1330 GMT, which could influence the Federal Reserve's stance on interest rates hikes. The data follows last week's weak consumer sentiment reading.
"Further signs that the U.S. economic recovery is waning amid persistently elevated consumer prices could prompt more investors towards gold as a safe haven," Exinity's Tan said.
Richmond Federal Reserve President Thomas Barkin said on Monday the Fed will not hesitate to raise interest rates, but the central bank should wait to gauge if inflation and labor shortages prove to be more long-lasting.
Rate hikes tend to weigh on gold, as they push bond yields up, raising the metal's opportunity cost.
Spot silver rose 0.6% to $25.18 per ounce, platinum gained 0.9% to $1,096.97, and palladium climbed 0.7% to $2,168.87.