Proactive Investors - Gold prices hit the highest level in more than two weeks, increasing $10 to US$1964 per ounce on Wednesday afternoon.
Today’s move marked the fifth straight day of gains for the precious metal.
Gold, which has been historically seen as a hedge against inflation, will likely continue its upward ascent near term as inflation remains more than a percentage point higher than the Federal Reserve's target rate despite being well off its peak of over 9% last year.
The US consumer price index rose 0.6% in August, its biggest monthly gain of 2023.
Meanwhile, bullish gold sentiment has also likely been boosted by central bank buying.
During the first quarter of 2023, global central banks added 228 tonnes of gold to its reserves, the highest rate of purchases in a first quarter since the data began being compiled in 2000.
This follows a record 1136 tonnes of gold purchased by central banks in 2022.
The bankers were also net buyers of the precious metal in June and July this year.
"What is still keeping the gold price supported is solid demand from central banks, which continue to diversify into gold," said UBS analyst Giovanni Staunovo as reported by Mining.com.
The People’s Bank of China (PBoC) has been the biggest buyer of gold year to date with total purchases reaching 126 tonnes.
And the recent goodwill towards gold appears to be trickling down to the stock prices of junior miners and explorers, as the VanEck Junior Gold Miners ETF (NYSE:GDX) (GDXJ), widely seen as the benchmark for the junior gold sector, has gained more than 5% over the past month.