Gold broke above the $ 1,900 mark on Wednesday to hit a 5-month high – trading very close to where prices started the year.
Gold is once again starting to attract a lot of attention on a scale not seen since the 2008 global financial crisis – against a backdrop of mounting inflationary pressures, combined with an unwavering commitment by central banks around the world to keep rates lower. Longer.
US inflation in April accelerated to its fastest pace in more than 12 years, with the CPI climbing 4.2% from the previous year.
The increase in the annual headline rate of the CPI was the fastest since September 2008, while the monthly increase in core inflation was the largest since 1981.
If you want to know where gold prices are going, take a look at the impressive gains in the rest of the metal complex, from copper, iron ore to palladium.
This month, Iron Ore broke $ 200 a ton for the very first time. Palladium has surpassed $ 3,000 to hit a new all-time high and copper prices are above an all-time high.
Gold is still relatively cheap compared to its peers and certainly has a lot of catching up to do.
Where do the prices go next? Now watch The Commodity Report, for my latest price predictions and predictions: