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Gold prices surged nearly 2% on Friday, successfully reclaiming the historic $5,000 per ounce milestone. This rally was triggered by US inflation data coming in softer than expected, which significantly eased previous market pressures. The new data has fueled market speculation that the Federal Reserve could pivot toward lowering interest rates sooner than anticipated. This shift in sentiment complements existing support from strong retail demand in China and the metal's role as a primary hedge against policy risks. As a result, the precious metal is benefiting from renewed optimism regarding monetary easing and potential currency devaluation. Overall, the combination of cooling inflation and shifting Fed expectations continues to bolster gold's bullish momentum in global markets.
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