Gold futures rose $13.00 on Tuesday following a hotter-than-expected consumer price index report. Prices of consumer goods rose for the fourth month in a row, with annualize inflation hitting 2.6%, the highest level in since 2011. Gold serves as a sought-after hedge against inflation.
June gold jumped to nearly $1,749.50 an ounce before retreating slightly to $1745.80.
With the expectation that the Fed will continue printing money for the foreseeable future, the belief is that there will be more inflation on the way.
The price of gold increased Tuesday even as bond yields (which tend to compete with gold as a safe haven refuge) saw little change after the inflation data.
Meanwhile, silver for May delivery jumped over 2% in Tuesday trading to trade at $25.41.
The 10-year Treasury note was down slightly at 1.63% despite the higher read on inflation read.
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