Gold, silver gain despite US inflation concerns: Key factors investors should watch

Résumé détaillé

Gold and silver prices rose in Asian trade as investors assessed US interest rates and inflation data, with COMEX gold futures gaining 0.49% to $4,049.90.

Gold and silver prices traded higher on Wednesday (November 11), with both precious metals extending gains in early Asian trade as investors assessed the outlook for US interest rates following stronger-than-expected inflation data.

On COMEX, gold futures rose $19.70, or 0.49%, to $4,049.90 per ounce. Prices touched an intraday high of $4,050 an ounce, compared with a low of $4,034.10 an ounce.

Silver futures gained $0.965, or 1.88%, to $52.190 per ounce, after moving between $51.420 and $52.200 an ounce.

The gains came even as hotter-than-expected US inflation triggered a selloff on Wall Street and pushed Treasury yields higher, raising concerns about further monetary tightening by the US Federal Reserve.

US consumer price index (CPI) data showed headline inflation rising 0.4% in October from September, while core inflation, which excludes food and energy, increased 0.3%. Core inflation exceeded estimates for the third consecutive month.

The data strengthened expectations of a tighter monetary policy. Two-year US Treasury yields jumped 17 basis points to 4.73%, while money markets began pricing in the possibility of a quarter-percentage-point Fed rate hike next month.

Higher interest rates and bond yields generally weigh on gold because the non-yielding asset becomes less attractive compared with interest-bearing investments. A stronger dollar can also put pressure on bullion by making it more expensive for buyers holding other currencies.

However, investors continue to monitor geopolitical developments and movements in the US dollar and crude oil prices for further direction.

Asian equities opened mostly higher on Wednesday (November 11), recovering some ground after the Wall Street selloff. Japan's Nikkei 225 gained 0.28%, while the Topix advanced 0.64%. South Korea's Kospi slipped 0.34%, and Taiwan's TAIEX rose 0.58%.

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