PRESS ROOM
Inflation helps gold build positive momentum
Friday 28th May '21
The price of gold had dropped below $1700/oz in March. It appears that over the first quarter of this year, gold was transitioning from being a safe-haven asset – which was its primary role last year – to becoming an inflation hedge. This transition has accelerated in the second quarter especially since US consumer price index (CPI) inflation came out at 4.2% for April – well above consensus estimates. As of 26 May, gold is on the cusp on $1900/oz.