Gold Closes in On $1,800 After Strongest Week in 4 Months By Investing.com – Investing.com

Gold Closes in On $1,800 After Strongest Week in 4 Months By Investing.com – Investing.com

© Reuters.

By Barani Krishnan

Investing.com - Gold is on track to its best weekly showing since December as U.S. inflation risks and a reintroduction of political risk hedging helps set the yellow metal on a potential return path to $1,800 pricing.

on New York's Comex as well as the of bullion were up almost 2% each on the week in Friday's afternoon trade. It was the strongest relative performance in four months, since the week ended Dec. 11, when futures rose 2.5% and bullion 2.2%.

Gold's resurgence this week came as U.S. bond yields plunged amid a hike in consumer prices that reasserted the yellow metal's diminished role as a hedge against inflation.

Sweeping sanctions imposed on Russia by the United States on Thursday also brought gold back — in the eyes of some, at least — as a protection against political risk.

U.S. bond yields, measured by the , hovered at 1.58% on Friday, markedly lower from a 14-month high of 1.77% on March 30.

“It would appear that the bond market is finally buying into the Fed's low-for longer verse which would be supportive of non-yielding gold,” said Sophie Griffiths, research head for the U.K. and EMEA at online broker OANDA.

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