Gold Futures Closed Positive on the Back of High U.S. Inflation Numbers

Gold futures closed higher on Wednesday (May 11) as investors bought gold as an inflation-proof asset after the U.S. consumer price index rose more than expected in April.

  • The gold futures were up $12.7, or 0.69%, at $1,853.7 per ounce.
  • Silver futures were up 15.1 cents, or 0.7%, at $21.575 per ounce.
  • The platinum contract was up $42.6, or 4.5%, at $989.8 an ounce.
  • The palladium contract fell $35.80, or 1.75 percent, at $200.90 an ounce.

The gold price was positively influenced by the devaluation of the dollar. This makes gold contracts cheaper for holders of other currencies. The dollar index fell against the six major currencies in a basket of currencies by 0.3% to 103.61.

Gold contracts also recorded the strongest one-day increase since April 29 this year, as investors bought gold as an inflation-proof asset.

According to the U.S. Department of Labor, the consumer price index (CPI) rose 8.3% year over year in April. That was above analysts’ forecast of 8.1% but below the 8.5% increase in March, the highest level since December 1981.

The CPI also increased by 0.3% in April compared with the previous month. This was above the forecast of 0.2%, but below the 1.2% recorded in March.

Meanwhile, the core CPI (excluding food and energy) rose 6.2% in April from a year earlier. However, it is below the 6.5% recorded in March, the highest level since August 1982.

On a monthly basis, the core CPI rose 0.6% in April, following a 0.3% increase in March.

The Spot Market is Open

Thursday, May 12, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,851.00
1,852.00
-1.70
-0.09%
1,850.10
1,860.30
Silver
12.00
21.34
21.44
-0.22
-1.02%
21.32
21.73
Platinum
12.00
984.00
994.00
-6.00
-0.31%
984.00
1,005.00
Palladium
11.30
1,948.00
2,098.00
-6.00
-0.31%
1,934.00
2,102.00
Rhodium
05.00
14,350.00
16,250.00
0.00
0.00%
14,250.00
16,250.00

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