Gold prices rebounded from a two-week low as investors turned back to a safe-haven following concerns over rising global inflation mainly due to soaring energy costs.
However, the US dollar and stronger treasury yields prevented the precious metal from rising higher and remained stuck around the $ 1,850 price level per ounce.
During the Asian trading session, spot gold traded steady at $ 1,845 per ounce, while gold futures traded at $ 1,947 per ounce.
According to analysts, investors are now desperate to get more safe-havens than just holding bonds and that’s why gold is performing better.
The risk of inflationary pressures returned to haunt investors after the European Zone once again set a new record in its consumer price increases by rising higher in May.
This has led to investors ’concerns that the latest sanctions on Russian oil imports by the European Union (EU) will drive higher energy costs and add to overall global inflationary pressures.
Meanwhile, JPMorgan Chase CEO Jamie Dimon has warned investors to be prepared for the ‘economic catastrophe’ triggered by the Federal Reserve and the war in Ukraine.
