Gold rises on US inflation


Gold approached the top of the last four weeks as investors evaluated the latest inflation data after the Fed’s tightening roadmap and the possible consequences of the ongoing war in Ukraine.

Precious metal continued to rise for the fifth consecutive session in Asian markets.

Despite the recovery in core inflation, driven by the removal of fluctuating food and energy prices in the US, headline inflation reached its highest level since 1981 in March.

Bond yields continued to rise after Tuesday’s slide as markets lowered their expectations about how aggressive the Fed will be in raising rates.

Spot gold prices continue to receive support due to the interest of investors as a store of value in the inflationary pressure environment caused by the Ukraine war.

Russian President Vladimir Putin’s statements that the peace talks with Ukraine were stalled and that the “special military operation” would continue, led to an increase in the demand for safe assets such as gold.

“Spot gold buyers still do not believe that the Fed can rein in the rise of oil and food inflation,” said Stephen Innes, Co-Founder of SPI Asset Management. It causes support and causes new premiums to be added to prices due to geopolitical risks,” he said.

About admin


Check Also


Biden’s statement on the 1915 events

US President Biden made a written statement regarding the 1915 events. Biden, in his statement, said, "The Ottoman authorities arrested ...

Leave a Reply

Your email address will not be published.