On Monday, gold prices rose as the greenback and U.S. treasury yields retreated. The price of spot gold rose 0.8% to $1,788.39 per ounce. On the other hand, the market is in anticipation of the consumer price index (CPI) report for July. After the shocking uptick in inflation numbers to the decades-high 9.1% in June, economists predict a 0.2% increase in July to an overall CPI of 8.7%.
Gold’s appeal has taken a hit due to policy tightening. However, geopolitical tensions have offered support to the yellow metal, mitigating the Fed’s aggressive rate hike. According to Peter Schiff, CEO of Euro Pacific Capital, real assets like gold might thrive in an inflationary environment.
