2 yıl önce

Gold prices hit five-month record high

The hike follows a surprisingly weak consumer sentiment reading in the US last week.

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Rate hikes tend to weigh on gold, as higher interest rates raise the non-yielding metal’s opportunity cost.

Gold prices have hit a five-month high as inflation worries burnished the safe-haven metal’s appeal even as the dollar and US bond yields strengthened.

Spot gold rose 0.2% to $1,866.62 on Tuesday, while US gold futures GCv1 were up 0.1% at $1,868.90.

Gold prices have rallied 1.8% since last Wednesday’s surge in US consumer prices last month, despite the dollar hitting a 16-month high and 10-year Treasury yields also moving higher.

A stronger dollar makes gold more expensive for buyers holding other currencies, while higher yields increase the metal’s opportunity cost.

There has been some routine profit-taking by shorter-term futures traders but gold’s upward trend is still firmly in place, said Jim Wyckoff, senior analyst at Kitco Metals.

Eye on US retail sales data

Markets are now waiting for US retail sales data due to be released at 1330 GMT on Wednesday.

Rate hikes tend to weigh on gold, as higher interest rates raise the non-yielding metal’s opportunity cost.

Bullion has gained about $100 over the past eight sessions, its longest winning streak since May, as its appeal as an inflation hedge has been boosted by a surge in US consumer prices and as major central banks have maintained a dovish stance on interest rates.

Interest rate hikes tend to reduce non-interest bearing gold’s appeal as it raises the metal’s opportunity cost. However, US benchmark 10-year Treasury yields rose to near three-week high, increasing the opportunity cost of holding the bullion.

The dollar index gained 0.3% to a 16-month high against its rivals.