Gold Regains $1800 as Powell, Yellen and the World Bank Acknowledge Higher and Persistent Inflation, Oil Hit Multi-Year High
GOLD and SILVER PRICES continued rising this Monday as US Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and the World Bank acknowledge pronounced inflation, amid oil prices hitting multi-year highs writes Atsuko Whitehouse at BullionVault.
Spot gold rose 0.6% to regain the key $1800 level after paring its highest in 1.5 months gain at $1813 per ounce last Friday.
"The surge in energy prices poses significant near-term risks to global inflation and, if sustained, could also weigh on growth in energy-importing countries," Kose said.
Brent crude futures rose by 1%, to $86.34 a barrel, after touching $86.43, the highest price since October 2018. It followed last Friday's 1.1% gain.
Meanwhile, US West Texas Intermediate (WTI) crude futures rose 1% to $84.62 a barrel after gaining 1.5% on Friday. Monday saw the highest levels since October 2014 at $84.76.
"On a 12-month basis, the inflation rate will remain high into next year because of what's already happened,” Treasury Secretary Janet Yellen answered Sunday on a question when she expects inflation to get back to the 2% range considered acceptable.
“But I expect improvement... by the middle to end of next year, second half of next year."
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