Gold up a fourth session to settle at a 4-month high

Gold inched higher on Tuesday to mark a fourth-straight session climb, with a weaker U.S. dollar and concerns surrounding inflation and market valuations, lifting prices to their highest finish since January.

“Investors know that inflation is going to run hot, and it will remain above the Federal Reserve’s target of 2%,” said Naeem Aslam, chief market analyst at AvaTrade, in a note. “Higher inflation numbers are going to keep the shine in the gold price, and it is highly likely that we may see the gold price topping the $1,900 mark in the coming days.”

The Fed is unlikely to adjust its monetary policy to handle inflation as it “continues to believe that the surge in inflation is nothing but temporary,” and Aslam expects that to help support gold prices.