The price of gold rose to its highest in more than three months on Monday after a US inflation scare last week that increased volatility on stock markets and resurgence of Covid-19 cases in parts of Asia.
Gold, which rallied to more than $2000 an ounce last summer before falling back after global drugmakers announced effective coronavirus vaccines in November, rose 0.7 per cent to $1,854 an ounce — its highest since February 2.
The yellow metal tends to do well in times of heightened uncertainty on stock markets and is often bought by investors as a hedge against inflation.
“Markets are climbing a wall of worry,” said Grace Peters, investment strategist at JPMorgan private bank. Stock market investors had had an “easy ride” in the first stage of economic recovery from the coronavirus pandemic in the US, Peters added, “and now we have the concept of peak [economic] data coming in and things are getting more volatile”….