Gold hits highest level in three months as traders worry about US inflation and bond market jitters – business live

Key events13m agoIntroduction: Gold hits highest level in three months as traders worry about US inflation and bond market jittersIpek Ozkardeskaya, senior analyst at Swissquote, has sent us her thoughts on gold.

double quotation markRenewed appetite for gold despite elevated long-term US yields is striking and sends a clear message: investors are moving back to the precious metal as:

A hedge against unclear US fiscal plans and the lack of conviction in the US administration’s capacity to rein in exploding debt when military expenses are adding to already heavy bills.

A hedge against inflation, amid questions over the Fed’s willingness, or ability (!), to fight inflation independently.

A hedge against a potential rout across global risk assets on worries about high valuations, massive AI spending and the growing financing web around the companies involved in building the AI ecosystem – the circularity.