Gold price asserts while inflation risks persist

The gold prices They rose on Wednesday as inflation concerns kept some investors nervous, while expectations that rising prices would force central banks to raise interest rates strengthened the dollar and limited bullion’s advance.

At 1100 GMT, spot gold was up 0.5% to $ 1,859.49 an ounce, while US gold futures were up 0.5% to $ 1,862.60.

“Investors fear that inflation will get out of control and are therefore buying gold to hedge against that risk,” said Carlo Alberto De Casa of Kinesis Money.

Rate hikes remain a potential risk for gold and only a clear advance above US $ 1,875 could generate more gains, he added.

Higher rates increase the opportunity cost of owning non-interest bearing gold.

Bullion gains were also reduced by the strength of the dollar – which competes with gold as a safe store of value – following better-than-expected retail data in the United States, making the metal more expensive for foreign buyers.

In other precious metals, spot silver improved 1% to US $ 25.04 an ounce; platinum was up 0.2% at $ 1,063.03; and palladium was down 0.2% at $ 2,154.09.

With information from Reuters