Gold is traded at $1,754.20 on Thursday after hitting a four-month low of $1,677.9 per ounce on Sunday.
Gold has been rallying for the past week, recovering from its recent selloff amid news that inflation is stronger than expected.
Investors worried about inflation see gold as a possible safe haven. And, indeed, inflation reads came in hotter than expected.
Wednesday’s CPI data proved inflation is here and consumers are consequently paying 5.4% more for goods.
On Thursday, the July Producer Price Index was released. PPI is a measure of producer price inflation and showed nearly 8% year-over-year inflation.
Investors tend to hold gold as a safe haven against inflation.