Gold hit a five-month high, leading a rally in precious metals as an acceleration in US consumer prices last month increased the appeal of bullion as a hedge against inflation.
Spot gold rose 0.7% to $ 1,843.31 per ounce, after reaching its highest since June 15 of $ 1,868.20 early in the session. Gold futures in the United States gained 1% to $ 1,848.3.
“Once again, we have hot inflation data,” said David Meger, director of Metals Trading at High Ridge Futures. “Gold being the hedge par excellence against inflation, it is the underlying positive environment that will encourage the market to rise in the coming months.”
Consumer prices in the United States accelerated in October as people paid more for gasoline and food, marking the biggest annual increase in 31 years.
“This environment is a double-edged sword, because as inflation data continues to come out hotter than expected, the concern will be if the Federal Reserve reduces liquidity faster than anticipated,” Meger said.
Following gold, spot silver rose 1.3% to $ 24.59 per ounce, platinum added 0.7% to $ 1,066.05 and palladium gained 0.4% to $ 2,028.44.
A safe-haven gold heading for a fifth straight day of gains, it was also supported by falling real yields on U.S. Treasuries and risk aversion that drove major indices down. of Wall Street.
Copper prices fell as high inflation figures in China and the United States aggravated concerns about slowing economic growth and measures by central banks to tighten their monetary policies.
Three-month copper on the London Metal Exchange fell 0.2% to $ 9.539 a tonne.
Prices of the red metal have risen about 23% this year after rising 26% in 2020, but have lost momentum after hitting $ 10,747.50 a ton in May.