By Sherin Elizabeth Varghese
(Reuters) – Gold costs prolonged a report run on Wednesday as considerations of rising inflation boosted demand for gold as a hedge, with bullion merchants shrugging off doubts over an imminent U.S. rate of interest lower and rising Treasury yields.
Spot gold was up 0.3% at $2,286.24 per ounce, as of 0406 GMT, and hit a report excessive of $2,288.09 earlier within the session. Bullion has hit report highs consecutively since Thursday.
U.S. gold futures gained 1.1% to $2,306.60.
“Gold continues to obtain safe-haven flows as Ukraine continues to assault Russia’s oil infrastructure, to the purpose it’s ignoring rising U.S. yields and the prospects of the Fed not chopping charges in June,” Metropolis Index senior analyst Matt Simpson mentioned. [US/] [USD/]
Federal Reserve policymakers on Tuesday mentioned they suppose it could be “affordable” to chop U.S. charges thrice this yr, whilst stronger latest financial information has sown investor doubts about that final result.
Knowledge this week confirmed U.S. manufacturing unexpectedly rebounded, with the rise in uncooked supplies costs triggering fears that inflation might resurge.
“With commodity costs rising typically, it brings the dangers of one other spherical of inflation – so maybe traders are hedging for inflation,” Simpson mentioned.
Gold, which is used a hedge in opposition to inflation and a secure haven throughout instances of political and financial uncertainty, has gained greater than 10.8% to this point this yr and is about for a seventh consecutive day by day rise.
“Proper now, gold is sensing that inflation is extra of a driving variable than the rates of interest and a part of the momentum can be pushed by speculators, hedge funds and commodity funds that begin shopping for gold at any time when their quantitative techniques give them alerts,” Marex analyst Edward Meir mentioned.
Elsewhere, spot silver rose 1.2% to $26.41 per ounce, platinum gained 0.8% to $925.72 and palladium edged up 0.6% to $1.009.45.
Gold’s searing rally is doing nothing to reignite enthusiasm for platinum jewelry in Asia, analysts mentioned.
(Reporting by Sherin Elizabeth Varghese and Swati Verma in Bengaluru; Modifying by Sonia Cheema)
