The gold price rose significantly on Wednesday after a sharp rise in US inflation data. In the afternoon, the price of a troy ounce (31.1 grams) on the London Stock Exchange rose by up to two percent to $ 1.868. This is the highest level since mid-June. In the morning, the precious metal had cost around $ 1.825.
The inflation rate in the US rose to its highest level since 1990 in October. Consumer prices increased by 6.2 percent compared to the same month last year. Analysts had only expected an acceleration to 5.9 percent on average. In the previous month, the rate was 5.4 percent.
“Inflation seems to be out of control,” commented Thomas Gitzel, VP Bank’s chief economist. Actually, it was to be assumed that the inflation peak had already been exceeded – but far from it: the pandemic held many surprises in store, the inflation risks would continue to increase.
In Gold many investors see inflation protection. Since investors do not expect the US Federal Reserve to raise interest rates anytime soon, we will Gold always more attractive when inflation rises.
Whether the Fed will be able to maintain its loose course is becoming increasingly uncertain: “In view of these figures, it is becoming more and more difficult for the US Federal Reserve to attribute the acceleration in inflation solely to special and catch-up effects,” said analyst Dirk Chlench from Landesbank Baden- Württemberg. “By the end of next year at the latest, the Fed will be forced to abandon its hesitant stance and initiate a policy rate reversal.”
Of the Bitcoin again reached a record high on Wednesday. At almost 69,000 US dollars (59,6001 euros) the oldest, best known and largest digital asset in terms of market value reached its highest level to date on the Bitstamp trading platform. Ether, the second largest Internet currency in terms of market volume, also reached a record high at 4,861 dollars. The round mark of $ 5,000 is thus getting closer and closer.