Gold Rises 1.4% with Inflation Data

Introduction

Welcome to our Gold news series, where we bring you short and sweet news updates on the global economy and gold market. Today's news discusses the recent inflation figures in the United States.

What exactly happened?

Consumer prices have increased for July, which was attributed to rising consumer demand and overwhelmed supply chains. Federal Reserve Chairman Jerome Powell comments that these inflationary pressures are likely to be transitory and linked closely towards the reopening of the US economy.
On the other hand, investors are concerned that this may create debates at the federal reserve on tapering.
The market anticipates that the tapering date may come as soon as August 26th - 28th or as late as October 2021.
The release of inflation figures saw Gold prices recovering by 1.4% to $1,752 per ounce. Gold is a good hedge against inflation due to its ability to maintain purchasing power, unlike other investment assets.
The global share market has also peaked to record highs due to the rising inflation figures published and the $1 trillion infrastructure bill that would see investments in many industries such as road and transportation.