“Once again, we have hot inflation data,” said David Meger, director of metals trading at High Ridge Futures, adding: “With gold being the quintessential hedge against inflation, we believe that it is the underlying positive environment that will encourage the market to rise in the coming weeks and months.”
Gold, a safe haven asset par excellence, marked a fifth consecutive day of earnings, which was not only driven by the rise in prices but also by the fall in real yields on US Treasury bonds and the aversion to risk that caused the main Wall Street indices to fall.
“The breakout of the key resistance level of $ 1,835 an ounce is important and a close above the $ 1,851 mark could ignite the bullish momentum towards $ 1,900.”said Standard Chartered analyst Suki Cooper. “Gold has solid support from which to push the price, given strong seasonal demand from India,” he added later.
Consumer prices in the United States accelerated in October as Americans paid more for gasoline and food, which was the largest 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 whether the Federal Reserve reduces liquidity faster than anticipated,” said David Meger.
Boosted by the momentum of 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 $ s2,028.44. The rally outweighed the strength of the US dollar, which often dampens demand for gold from buyers with other currencies.
Source From: Ambito
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