Gold edged higher in early trade, trading at $4,724.45 an ounce after U.S. consumer prices rose in April.

Analysts note that the uptick in inflation often drives investors toward precious metals as a hedge. Commonwealth Bank of Australia’s Vivek Dhar projects that safe‑haven demand could lift gold toward $6,000 an ounce by year‑end.

The rally reflects concerns over U.S. Federal Reserve policy independence and aggressive tariff measures. Higher inflation fuels fears of tighter monetary policy, prompting a shift to gold.

For investors, the move signals that inflationary pressure remains a key driver of commodity prices, reinforcing gold’s status as a defensive asset in volatile markets.