People still want to invest in gold.

World gold prices at times dropped sharply when inflation data in the US heated up. Specifically, the consumer price index (CPI) in January 2025 increased by 0.5%, higher than the forecast increase of 0.3%.

This information has reinforced the message of the US Federal Reserve (FED) not to rush to reduce interest rates due to the unstable economy.

"Higher-than-expected CPI in the US put pressure on gold prices and market expectations for any interest rate cuts were almost extinguished."

The recovery of world gold prices from lows in the past two days shows that investors continue to favor having a safe asset to combat inflationary pressures.