The shiny metal is still holding above the $900 per ounce level, holding still in a way not seen in a month, as the surge in the inflationary pressures are making market participants head to the bullion just in order to hedge against inflation.
Yesterday gold managed to trade above $915.13 per ounce coming from the $900 levels, but because of some US data, the shiny metal declined back again to record a low of $899.90, though with the US dollar climbing up again the shiny metal coped to create $900 a support level.
In addition to the crude oil prices, as for the first time the crude held up for a longer period of time in those all time high levels, as its gripping upon the $120 levels, pushing the gold production prices to higher levels and due to the rising oil prices markets participants are convinced that higher inflationary levels sjpu;d make gold more appealing.
As for today, in the Asian trading session markets witnessed the bullion inclining to record a high of $906.15 per ounce and a low of 903.00 per ounce, due the calmness that did not last long, where Japan held their rates steady at 0.50%.
Food price are still continuing its rally to the upside inline with crude oil levels, in addition to the stability on the US lands, where all those things are proving the efficiency that the US economy have; but till now the economy is showing some calmness yet it's showing that it might be heading to the downside.
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