November 12, 2021

Can the Price of Gold Rise Higher Again?

 Gold prices remained strong at five -month highs after a sharp spike in US consumer prices caused investors to turn to the precious metal as an inflation hedge.

In the Asian session, the yellow metal traded flat around $ 1,857 per ounce, not far from the high it reached on Wednesday, $ 1,868 per ounce. Gold futures traded at $ 1,859 an ounce.

After recording an increase of around 2.3%, the precious metal is now on track to earn its biggest weekly profit in 6 months.

US inflation has soared to a 30 -year high in October and once again challenged the Federal Reserve (Fed) which is of the view that current price pressures are only temporary.

The slightly changed movement in US bond yields has given support for gold to continue to rise higher although at the same time the US dollar has also strengthened.

In addition, the strengthening of gold prices was also supported by the gloomy UK economic recovery in the third quarter due to the coronavirus outbreak, showing the country lagging behind other developed countries.