The Magazine for Asian Investors
Gold futures rose back above $1,950 today as investors flock to buy gold as a safe haven amid concerns over rising inflation worries.
Moreover, according to U.S. statements, the conflict with Russia could drag on for years.
- Gold futures rose $6.70, or 0.34%, to $1,952.30 an ounce.
Investors are concerned about the lack of progress in peace talks between Russia and Ukraine as the battle enters its second month. Further rounds of sanctions were imposed by the EU last week, this time including a ban on coal imports from Russia. This could weigh heavily on the EU, which buys most of its coal from Russia.
Markets are looking at inflation numbers this week. The U.S. Department of Labor will release the Consumer Price Index (CPI) on Tuesday. One day later, the producer price index (PPI) for the month of March will be published.
However, the positive range of the gold price was limited by the appreciation of the dollar and the rebound in U.S. Treasury note yields.
A stronger dollar will make gold contracts more expensive for holders of other currencies. The rebound in U.S. government bond yields increases the opportunity cost of owning gold since gold is an asset that does not yield interest.
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Monday, April 11, 2022