Gold prices rose on Thursday, consolidating near their highest level in nearly five months reached Wednesday, following a surge in the US inflation rate that pushed investors toward bullion safety.
Spot gold rose 0.6% to $ 1,861.39 an ounce. Gold futures in the United States gained 0.8% to $ 1,863.90 an ounce.
“Spot gold remains high after the latest US CPI report hit the argument that ‘inflation is transitory,'” said Han Tan, chief market analyst at Exinity, adding that metal prices Yellow will be well supported as long as inflation fears continue to dominate investor sentiment.
Gold, seen as a hedge against inflation, rose to 2% on Wednesday to its highest level since mid-June, after government data showed US consumer prices rose in October at their fastest pace. in 31 years.
The gradual withdrawal of monetary stimuli and increases in interest rates tend to boost government bond yields, raising the opportunity cost of owning non-interest bearing gold.
Recent gold gains have been supported by the dovish tone adopted by the world’s major central banks last week. Furthermore, the Fed reiterated its view that inflation is “transitory” and would probably not require an aggressive cycle of rate hikes.
Reference-www.eleconomista.com.mx