Gold Hits 3-Month High As US Fed Interest Rate Hike Fears Ease

Gold prices in the international market edged higher, hitting a 3-month peak, as investors fear on further interest rate hikes in the US eased considerably.

Gold was last seen trading at at $1,141 an ounce after hitting a peak of $1145 per ounce. Gold has been under pressure from worries over rising interest rates in the US.

However, falling commodity prices globally may keep inflation much below the US Fed's target of 2 per cent, delaying the possibility of an interest rate hike in the US.

The US Fed Reserve had last raised policy rates in Dec and there were fears that it may also do so, again in March. However, poor inflation reading may push the date even further.

This may prompt a further rally in gold with analysts suggesting that it could hit $1550 an ounce very shortly.

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