Gold Prices Are Getting a Boost From Inflation

The most actively traded gold futures contract on Monday rose 0.5% to $2,012.90 a troy ounce, on pace to settle at its highest level in six months, boosted by growing optimism about a soft landing.

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The most actively traded gold futures contract on Monday rose to $2,012.90 a troy ounce, on pace to settle at its highest level in six months, boosted by growing optimism about a soft landing#gold #inflation #investment pic.twitter.com/LkXUlXvxsq

— The_Journalbiz (@the_journalbiz) November 27, 2023

Factset chart

Gold prices have jumped 3.2% since a cooler-than-expected Nov. 14 inflation report boosted wagers that the Federal Reserve could cool the economy and not tip it into a downturn.

Several beaten-down corners of the stock market are rebounding to help drive a surge that has lifted the S&P 500 by 3.3% since mid-November and 19% for the year. Among the biggest gainers: were sectors that had been bruised by higher interest rates and recession fears.

Government bond yields have declined, making gold, which doesn’t pay any regular income, more attractive by comparison.

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Source:WSJ/Factset

Image: Gold