Gold futures ended higher Tuesday, with data showing US consumer prices in March rose for the fourth month in a row and the pace of inflation hit the highest level in 2½ years lifting the metal’s appeal as a hedge against inflation.
Data showed a bigger-than-expected rise in US inflation and this boosted bullion’s appeal as a hedge against it and weighed on the dollar and Treasury yields.
Spot gold rose 0.2 per cent to $1,747.49 per ounce by 0125 GMT.
US gold futures were steady at $1,747.40 per ounce.
Consumer prices in the United States soared by the highest in more than 8-1/2 years in March, setting off what most economists expect to be a fleeting spell of higher inflation. Gold is a much-favoured inflation hedge for investors, and is rising on the back of sentiment that expects higher inflation.
The US dollar fell to three-week lows, making gold cheaper for holders of other currencies, as gold is officially priced in dollars.
Meanwhile benchmark 10-year Treasury yields also inched down, making this safe-hedge investment less attractive.
Concerns posed by a suggestion of U.S. health officials to delay the use of Johnson & Johnson’s Covid-19 vaccine also supported safe-haven gold.
The US economy could expand by 5 per cent to 6 per cent this year, boosted by increased vaccinations and solid fiscal assistance, but the Federal Reserve will not withdraw its funding just yet, Philadelphia Fed President Patrick Harker said.
The European Central Bank should spell out its tolerance for overshooting its inflation target, ECB policymaker Francois Villeroy de Galhau said on Tuesday.
China’s exports rose sharply in March while imports growth surged to the highest in four years.
Bitcoin reached a new high of $62,741 on Tuesday, continuing its 2021 run to new heights just a day before the listing of Coinbase stock in the United States.
Silver rose 0.4 per cent to $25.42 and palladium was at at $2,689.44. Platinum was up 0.8 per cent at $1,165.72
This content was originally published here.
Gold Talking PointsThe price of gold pares the advance following the Federal Reserve interest rate decision amid the…
Amazon today has introduced a new record low price on the 256GB Wi-Fi iPad Air in Rose Gold, priced at $659.99, down…
The last time this happened the price of gold soared 25X and silver skyrocketed 38X, but here is another bullish…
Share Great Content for Our Resource Section
MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.
Have a question or comment? Email us at: email@example.com