Gold Reaches a 4-Month High Supported by Falling Dollar And Inflation Concerns

Gold prices rose on Tuesday and reached their highest levels in nearly four months during the session, supported by the weakening of the US dollar and investors’ use of the metal, which does not yield a return, to hedge against rising inflation.

Spot gold rose 0.2% to $ 1868.30 an ounce, after hitting its highest level since 29. January session earlier. US gold futures rose 0.1% to $1,869.60.

Analysts also noted that the inflows into gold ETFs indicate that investors are buying gold to hedge inflation concerns.

Holdings of SPDR Gold Trust, the world’s largest gold-backed index fund, rose 0.7% to 1,035.93 tonnes on Monday, the highest level since late March.

Regarding other precious metals, silver jumped 1.1% to $28.49, after hitting its highest levels since February 2 during the session.

Palladium increased 1.1% to $2,932, while platinum fell 0.6 percent to $ 1,232.