Choose country & language:

Gold edges higher amid inflation concerns

Home >  Daily Market Digest >  Gold edges higher amid inflation concerns

Written by:
Myrsini Giannouli

10 February 2022
Share the article

Gold continued trading higher on Wednesday, as rising inflation rates and mounting geopolitical tensions support the price of gold. An escalation of the Russia-Ukraine crisis might boost the price of gold, as investors might turn to safe-haven assets. Geopolitical tensions might also drive the price of other commodities up, especially energy-related assets. The EU threatens Russia with heavy economic and trade sanctions in the event of an attack against Ukraine, which might backfire though, and have a heavy impact on the Eurozone. The EU relies on Russia for key commodities, such as wheat, natural gas and oil, and the price of these goods is already increasing. A disruption in importing these commodities would likely result in rising prices, increasing inflation rates in the EU. The increase in oil price in recent months has also been driving inflation up, benefitting gold prices, as the metal is often used as an inflation hedge.

Gold price climbed on Wednesday, breaking through the $1,829 per ounce resistance and climbing up to $1,835 per ounce. If the price of gold continues its ascend, it may find further resistance at $1,853 per ounce, while if it decreases, support may be found at 1,782 per ounce. 

On Thursday, the US bond auction will be held, which will display the value of US bond yields and is likely to affect the price of gold.  In addition, monthly CPI and Core CPI indicators are scheduled to be released for the US. These are key inflation indicators and may affect the price of gold, as they may help traders gauge the Federal Reserve’s fiscal policy in the coming months. 

XAUUSD 1hr chart

TRADE GOLD

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

The dollar remains strong on robust US economic data

Myrsini Giannouli 28 September 2022

Gold prices pressured by a strong dollar

Myrsini Giannouli 28 September 2022

Oil prices edge higher on supply concerns

Myrsini Giannouli 28 September 2022

Cryptocurrencies volatile amid market turbulence

Myrsini Giannouli 28 September 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!