Gold futures rise amid high U.S. inflation



04/18/2022 9:46 AM


Gold is rising in value on Monday morning as a safe haven asset amid high inflationary pressures in the U.S., trading data showed.



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The price of June gold futures on the Comex Exchange in New York is up $11, or 0.56%, to $1,985.9 a troy ounce this morning. Silver futures for May delivery are up 1.19% to $26.01 an ounce.

The gold price is supported by high inflation in the U.S. Thus, the annual inflation rate in the country accelerated to its maximum since 1981, reaching 8.5% in March. Traditionally, the precious metal has acted as a hedge fund at high consumer prices.

"Gold is rising in price because of fears that higher inflation in the U.S. will trigger demand for the safe-haven asset," DailyFX analyst Thomas Westwater told the Wall Street Journal. "However, while inflation is at more than a 40-year high, expectations for the future are changing. This is likely to put pressure on gold prices," the expert added.

source: wsj.com

 


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