Spot gold price surged around one percent on Wednesday in the wake of another US inflation report that is seen as problematic for consumers and the economy. As of 1345 hours GMT, gold in the international market was available at $1,853.70 per ounce, gaining $15.70 (+0.85 percent). Out of the $15.70 per ounce increase, +$8.55 was due to weakening of the US dollar and +$7.15 was due to predominant buyers, according to Kitco Gold Index. The price of 10 grams of 24-carat yellow metal in Pakistan, increased to Rs113,500 after gaining Rs500. Gold price in the local market settled at Rs113,000 on Tuesday last. A relatively lower increase in the local gold prices was due to overnight decrease in the gold prices globally when the local market was closed. Moreover, the Pakistani rupee’s depreciation against the US dollar during the day also pushed local prices up. The US Consumer Price Index report for April showed inflation at 8.3 percent on a year-on-year basis. The number was expected to come in at 8.1 percent. Inflation moderated on an annual basis for the first time in months in April, but the 8.3 percent annual Consumer Price Index increase remained uncomfortably rapid — and a closely watched index that subtracts volatile food and fuel costs actually accelerated. The takeaway was that the pressures that have kept inflation elevated for months remain strong, a challenge for households who are trying to shoulder rising expenses and for the White House and Federal Reserve as they try to put the economy on a steadier path. Inflation remains a main concern for traders and investors, along with the ongoing Russia-Ukraine war and Covid-19 lockdowns in China. Gold is considered a hedge against inflation and geopolitical risks. However, rising US interest rates raised the opportunity cost of holding non-yielding bullion and boosted the greenback in which gold is priced.