Gold Prices Climb Even Further, Inflation Moves Commodities

Gold has regained its position as the standard hedge for international investment markets. On March 28, the precious metal registered a new all-time high in price

Gold prices rose even further on Tuesday, as hotter-than-expected U.S. inflation numbers pushed futures above the $3,100 level.

By 07:05 ET (11:05 GMT), gold futures due December had risen by 0.6% to $3,096, while spot prices edged up by 0.2% to $3,080.

Both instruments touched record highs on Monday, with spot rates hitting $3,086.70 and futures settling above the $3,050 mark.

Analysts stated that the inflation figures, which came in slightly higher than anticipated, might have contributed to the perfect conditions for gold to continue its upward trajectory. However, most attributed the ongoing rally to the fundamental factors, highlighting gold's role as a counterparty-free and controlled-risk hedge against various forms of market instability.

Peter Grant, vice president and senior metals strategist at Zaner Metals, maintained his view that the fundamentals of gold are driving the market.

“It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade, and ongoing geopolitical uncertainty as well,” Grant said.

Economist James Rickards added that the factors driving gold are the same as before.

“Drivers: Central bank buying, BRICS accumulation, flat mining output, flight to (non-Treasury note) quality, diversification, and its role as the ‘everything hedge’,” Rickards said.

Moreover, Rickards noted that another factor yet to emerge could lead to a steeper rally in gold: greater participation by retail investors, who are currently keeping their distance and observing from the sidelines.

Earlier in March 19, gold reached another all-time high, as spot prices touched $3,057 per troy ounce. The precious metal has set 18 records this year, and many believe it could reach even higher levels depending on the Trump administration's actions regarding tariffs and the ongoing international military conflicts.