The price of gold rose sharply on Wednesday.
In the afternoon, the price for one troy ounce (31.1 grams) on the London Stock Exchange jumped in a short time by around two percent to 1796 US dollars. The price for the precious metal thus reached its highest level since mid-September.
On the market, the rising gold price was justified, among other things, with falling yields on government bonds. The lower yield makes the precious metal more attractive to investors compared to government bonds that are perceived as safe. US Treasury bond yields in particular fell sharply in the afternoon after initially rising after surprisingly high inflation in the United States.
In the gold trade, consumer price developments have also come back into focus. Raw materials expert Daniel Briesemann from Commerzbank referred to the latest statements from the International Monetary Fund (IMF). The day before, he warned of wage-price spirals in the industrialized countries and called on the central banks to monitor inflation developments “very, very vigilantly”. Among investors, gold is also seen as a hedge against high inflation.
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