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Inflation Pickup Spurs Gold demand

(Kitco News) - Although Fed Chair Janet Yellen expressed a more hawkish bias, there is still skepticism that the Fed will move in March. With the uncertainty of upcoming European elections and until the administration provides a clear fiscal plan, it is likely the Fed may continue to hold off in March. Against that possibility, U.S. consumer prices rose to a four-year high, which gave bulls enough comfort to engage, on the assumption that the Fed is getting further behind the inflation curve. A close above the $1,237 level should usher in a test of the $1,255 area.

By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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