The most-actively traded gold futures contract extended recent gains early Thursday!
By adding over 1.7% to $1,743.30 a troy ounce after economic data showed that inflation eased in October.
Tweet on gold prices after Inflation report
Gold Prices Extend Gains After Inflation Report!
The most-actively traded gold futures contract extended recent gains early Thursday, adding 1.7% to $1,743.30 a troy ounce after economic data showed that inflation eased in October, via @business #gold #inflation pic.twitter.com/ccbLVw8cSo
— The_Journalbiz (@the_journalbiz) November 10, 2022
Bloomberg Chart on gold swings
Gold prices were boosted by lower government-bond yields and a weaker U.S. dollar, with traders betting that the latest inflation report signals that the Federal Reserve might not need to raise rates more aggressively than already forecasted.
Though many investors typically consider gold to be a hedge against rising prices, it hasn’t performed too well this year.
The Fed’s quest to tame inflation has supercharged a rally in government bond yields and the dollar. Both have contributed to gold’s 4.7% decline this year.