Gold Settles Near Four-Month Highs

Gold prices rose on Monday to reach a new level that is their highest in about four months, amid a decline in global stock markets and a subsequent increase in the demand for safe haven assets.

In addition, a decline in the U.S. Dollar (USD) amid mixed expectations about interest rates, following the recent surge in the inflation rate, provided support for the yellow metal.

Further support was provided to gold prices by the recent remarks by the Federal Reserve Vice Chair Richard Clarida, who said economic recovery still needs more time with the central bank yet to see substantial further progress towards its goals.

Today, gold futures for June delivery finished higher by $29.50, or 1.6%, at $1,867.60 per ounce.

This is the highest closing level for the yellow metal’s most active contract since January 7.