[Asia Economy Reporter Park Byung-hee] Gold prices have risen to their highest level in over three months, Bloomberg reported on the 17th (local time).
According to Bloomberg, the spot price of gold in Singapore rose to $1,853.14 per ounce in the afternoon, marking the highest level since February 10.
Concerns over inflation and the increase in COVID-19 cases in Asian countries such as Singapore and Taiwan have driven gold prices higher.
U.S. retail sales for April, released by the U.S. Department of Commerce on the 14th, were weaker than expected. This led to analysis that the U.S. Federal Reserve (Fed) would maintain its accommodative monetary policy for a longer period, which could further stimulate inflation.
Margaret Yang, an investment strategist at DailyFX, explained, "Economic indicators have been weak, reducing concerns about the Fed's tapering (withdrawal of stimulus measures)." Yang added, "Demand for safe assets that can hedge against inflation supported the rise in gold prices." She also noted that the increase in COVID-19 cases in Asian countries such as Taiwan, Singapore, Thailand, and Vietnam supported the rise in gold prices.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
