UK Inflation Shows Increase Not Seen for 30 Years – Gold Rises 1.7%

Gold futures made an unexpected surge to a two-month high on Wednesday (Jan. 19). Official inflation figures in the UK rose to the highest in 30 years. In addition, tensions between Russia and the U.S. continue to increase and the U.S. dollar continues to weaken.

  • Gold futures were up $30.8, or 1.7%, at $1,843.2 per ounce.
  • Silver futures were up 73.9 cents, or 3.15%, at $24.231 an ounce.
  • The platinum contract was up $48.9, or 4.99%, at $1,028.4 per ounce.
  • The palladium futures were up $103.80, or 5.5%, at $2008.40 an ounce.

The dollar index slips 0.22% to 95.5180 against the other six currencies of the currency basket.

After the less than successful talks between the U.S. and Russia, tensions continue to rise. U.S. Secretary of State Antony Blinken increasingly wants to play tough and President Biden said that Putin will pay a “dear price” if he conquers Ukraine. These signals also mean that security investments such as gold will once again become the focus of attention.

The official inflation figures from the UK were published yesterday. According to these, the consumer price index rose by 5.4% YoY in December. This is the highest increase in 30 years. MoM, the CPI increased by 0.5%.

Investors are turning their attention to the Federal Reserve’s (Fed) monetary policy meeting on Jan. 25-26 after several Fed officials voiced support for a March rate hike to curb inflation.

The Spot Market is Open

Thursday, January 20, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.45
1,839.70
1,840.70
-0.60
-0.03%
1,837.90
1,844.90
Silver
10.45
24.16
24.25
+0.03
0.12%
24.06
24.27
Platinum
10.45
1,027.00
1,037.00
+1.00
0.10%
1,019.00
1,039.00
Palladium
10.45
1,939.00
2,089.00
-5.00
-0.26%
1,918.00
2,100.00
Rhodium
06.00
15,400.00
17,400.00
0.00
0.00%
15,400.00
17,400.00

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