Gold rises on inflation fears.
Gold under the bullish pressure today after strong U.S. inflation numbers increased the Gold appeal as an inflation hedge. The gains are still kept in check ahead of Federal Reserve Chair Jerome Powell’s testimony as early tapering bets rise. The biggest rise in U.S. consumer prices in 13 years has intensified investor focus on messaging from the Fed. On the one hand, gold is getting bought by inflation hedge, but on the other hand, rising market expectation for a rate hike at the end of next year is offsetting some of the price advances. A fed rate hike would dull bullion’s appeal as that increases the opportunity cost of holding the non-yielding metal.
Next resistance to watch – 1845.0
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