Fifth consecutive bullish session on gold driven by inflation

Gold traded higher on Wednesday, extending its uptrend with the latest US and British macroeconomic data showing that inflation is continuing.

Most of the precious metal’s current gains came after the UK published “higher than expected and accelerated” inflation, with rising prices continuing after the release of data on the “jump” in producer prices in the US.

In particular, the producer price index rose 1.4% in March in the US compared to the previous month, as the rally in energy continues to push prices, an indication that inflation is not expected to escalate soon from the high of 40 years. has climbed in recent months.

Since March last year, the index has jumped 11.2%, from 10% last month, climbing to its highest level since the early 1980s.

The official measurements exceeded the estimates of analysts who spoke of an annual increase of the index by 10.6% and a monthly by 1.1% in a Bloomberg poll.

The structural index excluding energy and food increased by 1% from the previous month and by 9.2% from the corresponding period last year, as shown by government data,

Thus, on Wednesday, the June contract for gold strengthened by $ 8.60 or 0.4% and closed at $ 1,984.70 an ounce. This is the fifth consecutive bullish meeting of the metal, something that had to happen since February, but also for the highest closing of an active contract since March 11, according to FactSet.

Silver also gained today, with the May contract adding 30 cents or almost 1.2% and closing at $ 26.03 an ounce, which is also the highest closing since March 11.

For the rest of the metals, copper for May delivery fell 0.1% to close at $ 4,712 a pound, the July contract for platinum rose 1.8% to $ 989.60 an ounce and the June delivery closed at $ 989.60 at $ 2,339.50 an ounce, with losses of 0.6%.