Gold Engulfed In Inflationary Inferno

Gold Futures for February Settlement oscillated between $1818.55 and $1828.15 per troy ounce as the prospect of an immediate transition to a tight monetary policy regime by the Federal Reserve diminished the yellow metal's glitter.

Gold Futures is currently trading at $1824.90, down 0.13 percent from the previous close of $1827.30.

Thursday's trading reflected renewed anxieties as another inflation reading, the Producer Price Index for the month of December is due for release early in the day. The measure is forecast at 0.5 percent versus the previous month's reading of 0.7 percent.

The dip in the dollar denominated prices of the precious metal is despite the Dollar Index falling by 0.15 percent overnight to 94.78.

The recent data release that showed the U.S. inflation increasing to a forty-year high of 7 percent and the Fed's aggressive stance in inflation fire-fighting have led to fresh debates on Gold's efficacy as an inflation-hedge.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT