Gold did not stop setting records this year (Shutterstock)

The price of gold continued its record highs today, Wednesday, as fears of inflationary pressures boosted demand for the yellow metal as a hedge, as well as traders ignoring doubts about an imminent cut in US interest rates and rising Treasury bond yields.

the prices

Gold fell in spot transactions by 0.40% to $2,271.5 per ounce, at the time of writing the report, after hitting a record high of $2,288.09 earlier in the session, and the precious metal has recorded successive record levels since Thursday.

Futures contracts for May delivery rose 0.41% to $2,279.6, while contracts for June delivery increased 0.42% to $2,291.3, at the time of writing.

City Index senior analyst Matt Simpson said: “Gold continues to receive safe-haven flows as Ukraine continues to attack Russia’s oil infrastructure, to the point that it (gold) is ignoring the rise in US Treasury yields and the possibility that the Federal Reserve (the US central bank) will not cut it.” Interest rates in June.

Federal Reserve policymakers said yesterday that they believe it would be "reasonable" to cut US interest rates three times this year, although the latest strong economic data has raised investors' doubts about this outcome.

Data this week showed that the manufacturing sector in the United States unexpectedly rebounded, as rising raw material prices raised fears of a possible return of inflation.

Gold continued its strong performances this year (Shutterstock)

Inflated round

“With commodity prices generally rising, that brings the risk of another round of inflation, so investors may be hedging against inflation,” Simpson said.

Gold, which is used as a hedge against inflation and a safe haven during times of political and economic uncertainty, has risen more than 10.8% so far this year and is on track to rise for the seventh day in a row.

As for other precious metals:

  • Silver rose in spot transactions by 0.72% to $26.30 per ounce.

  • Platinum increased 0.53% to $923.55.

  • Palladium fell 0.73% to $996.30.

Source: Reuters