Spot gold rose 0.2% to $ 1,796.59 an ounce, having reached its maximum since September 15, $ 1,800.12. Meanwhile, US gold futures gained 0.2% to $ 1,797.90.
“Traders and investors are finally realizing that rising inflation is historically bullish for metals regardless of what the Federal Reserve does.” said Jim Wyckoff, principal analyst at Kitco Metals.
Higher volatility in equities this month could also trigger some safe haven demand for gold, Wyckoff added.
The dollar and benchmark 10-year US Treasury yields were down. A weaker dollar makes gold cheaper for holders of other currencies.
Central bankers in the US said they could begin to reduce their support to the economy during the crisis in mid-November, but remain divided on the degree of threat posed by inflation and how quickly they may have to raise rates. of interest, according to the minutes of the last monetary policy meeting.
TD Securities noted in a note that while the “intense focus on the Fed’s exit valuation has ignored the growing risks of stagflation,” that has yet to translate into increased demand for gold.
However, as the energy crisis intensifies, the reasons for owning gold are “increasingly compelling.”
Among other metals, spot silver was up 1.7% at $ 23.45 an ounce, platinum was up 3.1% at $ 1,051.78 and palladium was up 1.4% at $ 2,136.18.
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