Gold Hits 4-Week Highs as U.S. Inflation Report Shocks Markets
U.S. gold futures hit four-week peaks on Friday as stocks on Wall Street took their worst beating in three weeks after the latest reading on U.S. inflation showed 41-year highs that suggested the Federal Reserve could get more aggressive with rate hikes.
Gold is supposed to be a hedge against inflation and it typically rallies when investors become worried about a reduction in the purchasing power of the dollar. But it’s not a perfect correlation as gold has also broken down various times this year when inflation data came in higher.
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