U.S. consumer prices rose in November at the fastest pace in nearly 40 years
Gold prices have rebounded sharply in recent sessions on the back of a decline in real yields after the latest Fed meeting
Demand for gold declined in the third quarter
The price of gold continues to rebound, regaining its mid-September level of about $1800, thanks to rising investor inflation expectations.
The price of gold has been under pressure since the beginning of the week after rising to a one-month high of 1,834 per ounce.
Gold prices are being supported by a weak dollar, subdued central bank commentary, and lower government bond yields around the world.
The price of gold continues to benefit from the weakness of the dollar and fears of an overheating economy.
After reaching an all-time high above 2,000 in August 2020, gold has charted a less sparkling path in recent months, trending lower year-to-date.
The price of gold has been recovering in recent sessions. After falling back to $1670 last week, the ounce of gold is back above its March highs at $1756.23 thanks to the slight drop in long-term rates.
The price of gold has rebounded in recent days to return near its March highs.
The price of gold is getting penalized by the steepening of the rate curve and the rise in yields of US government bonds at the start of the week.
After a record-breaking year, gold should appreciate in the medium to long term, according to CPM's Gold Yearbook.
After a very good year in 2020 and an almost stable January, gold prices recorded a sharp correction in February.
The price of gold fell over 1.2 percent on Tuesday on the back of a strengthening dollar and rising US Treasury yields.