Thursday, December 01, 2022

Gold at one-month high on inflation concerns

  • Gold investment demand very flat – Analyst
  • Rise in world stocks limited gold’s gains

December 28 (Reuters) – Gold rose to a one-month high on Tuesday on recent signs of rising inflation, although the metal gave up some early gains on a firming US dollar.

Spot gold was up 0.1% at $1,811.77 an ounce at 12:37 a.m. EDT (1737 GMT), having hit a high of $1,820 since Nov. 22. US gold futures rose 0.2% to $1,811.70.

David Meager, director of metals trading at High Ridge Futures, said the lack of growth in bond yields and the build-up of inflationary pressures are contributing factors to the gold market.

“The ongoing trend (for gold) remains higher in the near term, and we believe this trend is coming from a continuation of the inflationary pressures that we are seeing in the market.”

The US dollar gained 0.1% against a basket of peers, reducing gold’s appeal to holders of non-US currencies.

UBS analyst Giovanni Stanovo said gold prices are expected to remain around current levels early next year, but a rise in US interest rates and a fall in inflation could weigh on prices.

Bullion’s gains were also limited by gains in US equities, with the S&P 500 opening at a record high as investors remained unconvinced by Omicron-driven travel disruptions and store closures.

Read Also:  Before engaging in the latest trends, assess your company

Commodity analyst Jigar Trivedi said, “While there are concerns over the Omicron variant, investment demand (for gold) is quite flat. Hence, it is a year-end rally as there is still some risk-on sentiment.” In Mumbai based broker Anand Rathi Shares.

Silver rose 0.3% to $23.10 an ounce, while platinum climbed 0.9% to $979.54.

Palladium rose 1.9% to $2,007.36, having touched a more than a month high of $2,019 in the first session.

Register now for free unlimited access to

Reporting by Kavya Guduru and Sehar Darren in Bengaluru; Additional reporting by Ashita Sivaprasad; Editing by Aditya Soni and Uttaresh

Our Standards: Thomson Reuters Trust Principles.


Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.

Latest News

Related Stories