Gold rallies within $10 of all-time high as economic worries mount
Apr. 13, 2023 5:30 PM ET
SPDR® Gold Shares ETF (GLD), GDX, NUGT IAU, NEM, GFI, KGC, AEM, HMY, GOLD, AU, FNV, SGOL, GDXJ, PHYS, OUNZ, BAR, GLDM, AAAU, FGLD
By: Carl Surran, SA News Editor
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Gold prices pushed ahead to their highest level of the year Thursday, driven by bets that inflation will remain elevated despite recent declines.
Gold's rise this week even as two closely watched reports showed slowing inflation means investors are betting the Federal Reserve will cut back its campaign of interest rate hikes even with inflation readings well above the 2% target, which in turn comes from concerns that the economy may be weaker than it seems.
Analysts say such a Fed policy reversal could result in higher inflation becoming embedded in the economy in coming years, creating an environment that favors higher gold prices.
Front-month Comex Gold for April delivery settled +1.5% to $2,041.30/oz, a new 52-week high and the second highest close in history, just 0.5% below its record high of $2,051.50 hit on August 6, 2020.
The front-month gold futures contract has gained 12.2% this year, compared to the S&P 500's advance of ~7%.
Shares of precious metals miners have ridden gold's advance this year, with YTD gainers including Barrick Gold ( GOLD) +12.4%, Kinross Gold ( KGC) +24.6%, Agnico Eagle Mines ( AEM) +10.7%, Gold Fields ( GFI) +45.4%, Anglo Gold Ashanti ( AU) +39.2%, Harmony Gold ( HMY) +34.1%, Franco Nevada ( FNV) +13.5%. |
