Gold price marches to 5-month peak as tune of inflation amplifies

Gold kept its hot streak going on Wednesday, rising by as much as 2% to a five-month high, after a surge in US consumer prices last month elevated bullion’s appeal as an inflation hedge.

Spot gold was up 1.1% at $1,852.36 per ounce by 12:18 p.m. EDT, having earlier hit its highest since June 15 at $1,857.09. Meanwhile, December gold futures rose 1.4% to $1,856.70 per ounce in New York.

“Once again we have hot inflationary data,” High Ridge Futures’ David Meger told Reuters. The brokerage firm’s director of metals trading went on to say:

“Gold being the quintessential hedge against inflation, we believe inflation is the underlying positive environment that will foster the gold market rally in the weeks and months ahead.”