Gold Rises $17 After CPI Explosion

Gold futures rose yesterday evening (November 10) for the fifth day in a row. The reason is that investors are buying gold as a hedge against rising inflation. The U.S. consumer price index (CPI) has risen to its highest level in more than 30 years.

  • Gold futures were up $17.5, or 0.96%, at $1,848.3 per ounce.
  • Silver futures were up 45.4 cents, or 1.87%, at $24.772 an ounce.
  • The platinum contracts were up $15.6, or 1.47%, at $1,077 per ounce.
  • Palladium was up $16.80, or 0.8%, at $2,038.90 an ounce.

Investors are buying gold as a hedge against declining purchasing power after the U.S. Department of Labor released consumer price index (CPI) figures.

The Consumer Price Index (CPI), which is designed to measure cost-of-living inflation, rose 6.2% in October YoY and 0.9% in October from the previous month. This is the highest level since December 1990.

The core consumer price index, which excludes food and energy, rose 0.6% month-on-month (September: 0.2%) and 6.2% year-on-year (September: 4.0%).

The Producer Price Index (PPI), which measures inflation based on producer spending, rose 0.6% in October MoM and 8.6% YoY.

However, the gold price was put under pressure by the appreciation of the dollar, which was triggered by rising inflation figures in the U.S. This could prompt the Federal Reserve (Fed) to raise interest rates faster than expected.

  • The dollar’s movement index DXY against the six other major currencies in a basket of currencies rose 0.94% to 94.8460.
  • The US dollar strengthened against the yen at 113.80 yen from 112.83 yen.
  • The dollar strengthened against the Swiss franc at 0.9179 francs from 0.9104 francs.
  • The US dollar strengthened against the Canadian dollar at 1.2496 Canadian dollars from 1.2437 Canadian dollars.
  • The euro was lower against the dollar at $1.1483 from $1.1593.
  • The pound fell to $1.3414 from $1.3561.
  • The Australian dollar fell to $0.7332 from $0.7378.

The Spot market is Open

Thursday, November 11, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
13.05
1,855.60
1,856.60
+5.70
0.31%
1,843.20
1,856.70
Silver
13.05
24.90
25.00
+0.27
1.10%
24.56
25.03
Platinum
13.05
1,074.00
1,084.00
+7.00
0.66%
1,063.00
1,085.00
Palladium
12.50
1,973.00
2,123.00
+7.00
0.36%
1,959.00
2,126.00
Rhodium
06.00
13,000.00
15,000.00
0.00
0.00%
13,000.00
15,000.00

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