The Strategist

Gold futures rise amid high U.S. inflation

04/18/2022 - 09:46

Gold is rising in value on Monday morning as a safe haven asset amid high inflationary pressures in the U.S., trading data showed.

max pixel
max pixel
The price of June gold futures on the Comex Exchange in New York is up $11, or 0.56%, to $1,985.9 a troy ounce this morning. Silver futures for May delivery are up 1.19% to $26.01 an ounce.

The gold price is supported by high inflation in the U.S. Thus, the annual inflation rate in the country accelerated to its maximum since 1981, reaching 8.5% in March. Traditionally, the precious metal has acted as a hedge fund at high consumer prices.

"Gold is rising in price because of fears that higher inflation in the U.S. will trigger demand for the safe-haven asset," DailyFX analyst Thomas Westwater told the Wall Street Journal. "However, while inflation is at more than a 40-year high, expectations for the future are changing. This is likely to put pressure on gold prices," the expert added.