Daily Management Review

Gold rises to five-month high as inflation accelerates


The price of gold hit a five-month high. Investors are buying the precious metal because of rising inflation. It is also pushing investors into risky assets - cryptocurrencies and promising companies with no real results.

Gold rose to a five-month high, rising to $1868.5 an ounce, The Wall Street Journal reported. The price rose 2.9 per cent in the past week, the best result in six months, the newspaper added. As Bloomberg's statistics show, the precious metal reached $1864.9 an ounce on Nov. 12. That's a high since June 15, when gold cost $1859.02 an ounce, according to a chart on the agency's website.

The price of gold so far remains 10 percent below the record high of more than $2050 an ounce it rose to in August 2020, the WSJ said. It linked the rise in gold prices to rising inflation around the world: investors are looking for ways to protect their savings from it. Against the backdrop of rising gold prices, shares of gold mining companies also began to rise in price, the newspaper noted. 

Chris Gaffney, President of Global Markets at TIAA Bank, advised the WSJ to increase gold holdings to about 10%. Gold surpassing $1850 will attract new investors, after which it's likely to reach $1900 an ounce, Citibank analysts said. UBS analysts raised the target from $1700 an ounce to $1800, the WSJ reported.

source: wsj.com