THE STRAITS TIMES – Gold rose to the highest level in almost two months yesterday amid demand for an inflation hedge, while the bond market sell-off stalled and United States (US) stocks continued to retreat.
US President Joe Biden said it’s the Federal Reserve’s job to rein in the fastest pace of inflation in decades, and supported the central bank’s plans to scale back monetary stimulus.
The yield on 10-year Treasuries slipped from the highest level since January 2020, while the S&P 500 fell one per cent on Wednesday.
Geopolitical tensions are also supporting demand for the haven asset. Biden said he thinks Vladimir Putin will “move in” on Ukraine after amassing more than 100,000 troops on the nation’s border, although he suggested a full-scale invasion may not be in the Russian leader’s plans. The US president also said this week that he’s not ready to lift tariffs his predecessor imposed on Chinese imports.
