Gold reversed course and turned positive on Friday, briefly popping above the key $1,900 level, after data showed US consumer prices surged in April and boosted bullion‘s appeal as an inflation hedge.

Spot gold rose 0.1% to $1,896.96 per ounce by 12:10 p.m. EDT (1610 GMT), having earlier dipped as much as 0.8%. It is on course for its fourth straight weekly gain, up 0.9%.

US gold futures were little changed at $1,898.80.

US consumer prices accelerated in the year to April, with a measure of underlying inflation blowing past the Federal Reserve‘s 2% target.

“We saw a slight uptick in the personal consumption data… All these things continue to support an underlying inflationary environment that is very favourable towards gold,” said David Meger, director of metals trading at High Ridge Futures.

The refusal of the Federal Reserve to reduce the pace of their bond buying program or move higher on rates is also supportive for gold, although some psychological resistance at the $1,900 level and a stronger dollar is acting as a headwind, he added.

The dollar index was up, making gold expensive for other currency holders, while US yields edged lower, translating into reduced opportunity cost of holding bullion.

Investors now eye the release of US President Joe Biden’s first full budget since taking office, with reports he will seek $6 trillion in federal spending for the 2022 fiscal year.

The technicals are supportive, so any weakness in the prices will be looked at as a buying opportunity, Eli Tesfaye, senior market strategist at RJO Futures said.

If the US economy recovers quickly and inflation continues to heat up, gold will be in ample demand, he added.

Elsewhere, silver fell 0.1% to $27.82 per ounce, platinum slipped 0.4%, to $1,174.63, while palladium rose 0.3% to $2,814.20.