Business News Asia
The gold price continues to rise after inflation in the U.S. turned out to be higher than expected. Analysts also expect the new momentum in precious metals to be lasting.
However, the U.S. dollar is stronger, which could be an obstacle to supporting the gold price. But the inflation impulse was strong, so it remains to be seen whether the next target of $1900 will come within reach.
Gold rose $4.6, or 0.3%, at $1,868.50 per ounce. This is the highest close in 5 months.
The increase in the price of gold was caused by a 0.9% month-on-month increase in the consumer price index. Inflation rose by 6.2%, the largest increase in 31 years.
There was new U.S. economic data to report at the weekend. The U.S. JOLTs job opening numbers have risen more than expected, but are below the figures from last month.
Labor market demand fell to 10.44 million jobs in September from 10.63 million in August. The number of voluntary quits rose 164,000, or 3%, to 4.43 million, the highest level on record. In addition, the U.S. consumer confidence index fell to 66.8 in November from 72.8 in September.
Persistent inflation concerns or even the potential for stagflation are driving demand for inflation hedges such as gold, silver, and cryptocurrencies.
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Saturday, November 13, 2021