PRECIOUS-Gold nears 5-month peak as inflation worries boost appeal

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* US CPI grew at fastest pace in 31 years

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*Markets scared by inflation data – Analyst

* Silver at 3-month high

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Nov 11 (Businesshala) – Gold prices rose to a five-month high in the previous session after data on a spurt in US consumer prices raised rush of the precious metal seen as a hedge against inflation.

Spot gold was up 0.6% to $1,860.18 an ounce as of 1422 GMT. US gold futures for December delivery rose 0.9% to $1,865.50.

“Markets are panicked with yesterday’s CPI data coming in higher. Traders are viewing gold as a security asset as a hedge against this inflationary risk, said Bob Haberkorn, senior market strategist at RJO Futures.

Gold rose 2% on Wednesday and hit its highest level since mid-June, when data showed US consumer prices rose at the fastest pace in 31 years, indicating more inflation could be uneasy in 2022. can remain at a higher level.

“The readings we saw yesterday could be another push for gold to $1,900 an ounce,” Haberkorn said.

Lower incentives and higher interest rates boost government bond yields, increasing the opportunity cost of gold, which pays no interest.

Gold has breached new peaks in the past few sessions after major central banks indicated interest rates would remain lower in the near term last week, with the Federal Reserve maintaining its stance that inflation was “temporary”.

However, since then, Fed officials have raised concerns about prolonged inflation.

Saxo Bank analyst Ole Hansen said, “Although the narrative developed in the wake of the FOMC meeting last week that the Fed would see higher inflation numbers … these numbers (CPI data) were hot enough to shock the market.” Were.” pay attention.

Elsewhere, spot silver rose 1.7% to $25.05 an ounce, hitting its highest level since August 6 in the first session.

Platinum rose 1.9% to $1,087.75 an ounce and palladium jumped 2.7% to $2,075.09.

Reporting by Amy Karen Daniels in Bengaluru; Editing by Krishna Chandra Elurik


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