Gold Breaches $1,900 Again as Inflation Fears Linger

Gold Breaches $1,900 Again as Inflation Fears Linger

Gold certainly weathered a wild ride during the week. Nevertheless, it still looks the close the last trading day of the week with gains as inflation fears linger.

The bullion’s futures contract added 0.33% during the session, sending per ounce prices to $1,902.70. It managed to hit $1,916.64 as its intraday high which is the highest so far since early this year. 

Spot gold remains steady at $1,898.00 an ounce, translating to a contango. 

Analysts cheer on the update as this brings the precious metal closer to the $2,000.00 per ounce level. The threshold has become the ultimate resistance to crack since last year but proved to be the toughest one to break.

On Thursday, the US Consumer Price Index updated a 0.6% increase for last month. This result is one of the highest incurred so far in more than ten years.

Year to date, US CPI has already recorded a full 5% hike which is the biggest gain reported since the 2008 recession. The actual result is also higher than the average consensus of a 3.8% hike.

Analysts noted that the CPI update will continue to linger on investors’ mouths until the next catalyst comes into play.

Experts noted that the Federal Reserve will have no response to such market sentiment for the time being. The central bank has been vocal in saying that inflation is largely transitory and will dissipate by the second half of the year.

The Fed’s officials prepare for the Federal Open Market Committee meeting scheduled next week. 

On the other hand, traders see that the convention will bring about no particular change in interest rate setting, in particular.


Silver, Other Metals Update

In an update on silver price, the metal trades steadily at $27.96 an ounce. 

Analysts noted that the precious metal remains under the bullish territory, with a target price of $30.00 an ounce before the second half of the year.

Meanwhile, palladium fell by 0.5% while platinum followed the downtrend and slipped by 0.1% during the same session.

In an update on copper, experts in the field noted that while the metal descended from the top since last month, it is still a market favorite.

Insiders noted that the world’s biggest copper miners kept their bets relatively unchanged and took nothing during the wild swing upwards.

The metal currently traders still at a five-digit settlement which is largely higher than the $5,600.00 average during Q1 2020.