Yellow Metal Back In Black

The revival trend seen in most major global economies had initially stolen the glint off gold. The yellow metal slumped to $1,675 in international markets with investors regaining their risk appetite and stepping out of the safe haven. But the gold prices rebounded quickly to trade a shade below the recent highs. The prices soared past $1,900 per ounce in the first five months of 2021 and gained roughly $197 per ounce, or 11.55 per cent, in the last two months. What drives this rally in gold prices? A critical factor is the rise in US inflation to 5 per cent in May from 4.2 per cent in April – the highest since the global financial crisis of 2008 – while the core consumer prices climbed a steeper 0.9 per cent in April. The inflation bug has also bitten other economies, including India, making investors risk-shy yet again. The Federal Reserve sees inflation as a temporary...