The prices of the oro They hit a five-month high on Monday as inflation concerns highlighted the metal’s appeal as a safe haven despite rising dollar and US bond returns.
Spot gold rose 0.1% to $ 1,866.03 per ounce at, after a slight pullback earlier in the day due to profit-taking and its US futures fell 0.1% to $ 1,866.60 per ounce.
There have been some routine profit taking by short-term futures traders, but the bullish trend for gold remains strong, said Jim Wyckoff, a senior analyst at Kitco Metals.
The bullion has gained around $ 100 in the last eight sessions, the longest bullish streak since May, as its appeal as a hedge against inflation has been fueled by a surge in consumer prices in the United States and when major central banks have maintained a moderate stance on interest rates.
Rate hikes tend to reduce the attractiveness of non-interest bearing gold by increasing the opportunity cost of holding the metal.
However, benchmark 10-year Treasury yields rose to a near-three-week high, increasing the opportunity cost of holding gold. The dollar index gained 0.3% to a 16-month high against its rival currencies.
Saxo Bank analyst Ole Hansen warned that “if gold doesn’t break above $ 1,870 today, there is a risk that it could push it into the $ 1,830-1,835 area, as that could disappoint some investors.”
Minneapolis Federal Reserve Chairman Neel Kashkari said Sunday that he expects higher inflation in the coming months, but said the central bank should not overreact to high inflation, as it is likely temporary.
Spot silver fell 0.8% to $ 25.09 per ounce. Platinum rose 0.6% to $ 1,088.51 and palladium climbed 2.5% to $ 2,161.07.
Reference-www.eleconomista.com.mx