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News > World

Gold Rises on Inflation Worries

  • Gold bullion

    Gold bullion | Photo: EFE

Published 13 April 2022

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as investors reacted to the rising U.S. producer price index, another measure of inflation.

The most active gold contract for June delivery rose 8.6 U.S. dollars, or 0.44 percent, to close at 1,984.7 dollars per ounce.
The U.S. Labor Department reported that the U.S. producer price index for final demand in March increased 11.2 percent from last year and 1.4 percent from the prior month. The monthly gain was broad across categories and also the largest on record.

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A weak U.S. dollar also supported gold.
Traders understand that inflation isn't going to ease off from its current level very soon. All of the related economic disruptions that have caused inflation to spike, namely geopolitical conflict, COVID lockdowns, and supply chain snarls, appear to be having a bigger impact on gold than interest rate hikes, market analysts hold.
On Tuesday, Russian President Vladimir Putin said that Russia's conflict with Ukraine would continue until its goals are met. This fuels market's safe-haven demand for gold.
Silver for May delivery rose 29.5 cents, or 1.15 percent, to close at 26.03 dollars per ounce. Platinum for July delivery rose 17.2 dollars, or 1.77 percent, to close at 989.6 dollars per ounce.

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