WGC: Gold Prices Triggered by a Blend of Inflation and Geopolitical Risks

SEATTLE (Scrap Monster): According to the World Gold Council's (WGC) Weekly Markets Monitor Report, gold prices increased throughout the course of the previous week. Gold prices rose during the week due to a combination of global political issues and inflationary trends.

Due mostly to conflicting inflation data, cooling labor markets, and deteriorating consumer sentiment, the market expects the U.S. Fed to decrease interest rates as soon as possible. The EU region's economic strain has been exacerbated by France's political unrest. The ECB has maintained its 2% interest rate. India's retail inflation rate increased slightly from 1.6% in July to 2.07% in August on an annual basis. In other news, the Japanese economy expanded by 2% annually, which was quicker than expected.

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According to the weekly report, oil prices and major international equities markets are rising, while the US dollar is still declining.

For the fourth consecutive week, the price of gold increased marginally. Last week, the LBMA Gold Price PM increased 1.6% to US$3,651 an ounce. The yellow metal has seen a remarkable 40% increase so far this year. Following the completion of a triangular formation, WGC observed that gold was moving higher.