Price of spot gold surges on inflation
Spot gold prices hit a four-month high at US$1,860.50 an ounce yesterday as rising inflation fears boost demand for the precious metal as a safe-haven asset.
Concerns over inflation are rising worldwide as US inflation hit a 31-year high in October at 6.2%, much above analysts' forecast of 5.9% while eurozone inflation hit a 13-year high in October at 4.1% as the bloc confronts surging energy prices.
Fears of inflation drove investors to gold and cryptocurrencies like Bitcoin as hedges against inflation. However, gold is currently the better choice because its price remained laggard while cryptocurrency prices skyrocketed this year.
After the news of the "inflation shock" emerged, the gold price instantly rose by over 10% on Wednesday night, while the domestic opening gold price yesterday jumped by about 400 baht to 29,200 baht per one baht weight.
The spot price may hit $1,900 an ounce again this year, said analysts.
US inflation has risen over five consecutive months and is expected to drive the Federal Reserve to increase the tapering of its bond purchases to higher than its original target of $15 billion per month and adjust the interest rate faster than expected.
If analysts' speculation regarding the tapering and timing of an interest rate hike is true, it will hit the stock markets around the world and cause them to correct sharply.
https://www.bangkokpost.com/business/22 ... -inflation
As usual, Thailand does things its own way and has its own gold market so prices have not really risen that much here (or maybe thats to do with the manipulated currency). 
