Gold powers above $1,500 as inflation worries mount - Business
NEW YORK/LONDON — Gold rallied above $1,500 an ounce for the first time on Wednesday, extending this week's run of record highs as investors sought to hedge growing inflation risks and bought into a broad commodities rally.
Mounting evidence of quickening inflation in major Asian economies such as China and India were echoed in Latin America on Wednesday, with Brazilian prices nearing a government ceiling and Mexico's yearly rate exceeding a key target. The break-even rates on U.S. Treasury Inflation-Protected Securities (TIPS) rose for a second day.
A second day of deep losses for the dollar and near 2 percent gains in oil and grain markets that fueled further inflation concerns also buoyed bullion, which once again rose in tandem with riskier assets like equities as investors shifted their focus from gold's role as a safe-haven play to its potential as a store of value.
"People are buying any kind of risk assets almost without discretion across the commodity complex, and gold and silver are part of them," said Mark Luschini, chief investment strategist of broker-dealer [...]
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