Gold Hits High in Over a Week Driven by Inflation Fears

Gold Hits High in Over a Week Driven by Inflation Fears

“The biggest component of inflation right now, beyond supply chain issues, is oil prices. And this is a problem no matter how high you move interest rates,” said Stephen Innes, managing partner at SPI Asset Management.

“Gold is getting a bit defensive, realizing that we could be in this state of hyperinflation.”

Brent crude oil prices rose to their highest level since October 2014.

Gold’s gains were capped by a stronger dollar, while benchmark 10-year U.S. Treasury yields hovered near a high they hit on Friday, at their highest level since December 2019.

US inflation data for January is due out on Thursday and robust numbers could further boost the Federal Reserve’s plan to raise interest rates, after the US jobs report showed payrolls rose by 467,000. jobs last month.

After the US jobs data, the market is pricing in more than five rate hikes at the moment and this week’s inflation data will provide further clues to this, said Harshal Barot, a senior research consultant for South Asia. at MetalsFocus.

Among other precious metals, silver was up 1.3% at $22.78 an ounce, platinum was down 0.6% at $1,017.74 and palladium was up 0.4% at $2,293.90.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts