Gold prices have risen to a five-month high as inflation fears bolstered the safe-haven metal’s attractiveness, despite the strengthening of the dollar and US government yields.
On Tuesday, spot gold increased 0.2 percent to $1,866.62, while US gold futures GCv1 advanced 0.1 percent to $1,868.90.
Despite the dollar hitting a 16-month high and 10-year Treasury yields rising higher, gold prices have risen 1.8 percent after last Wednesday’s surge in US consumer prices last month.
Gold becomes more expensive for buyers holding other currencies as the dollar strengthens, while higher yields increase the metal’s opportunity cost.
