(Kitco News) – The gold market is seeing new bullish momentum after U.S. inflation data rose to its highest level in more than three decades, and some analysts are looking for a move back to $1,900 an ounce in the near term.
According to some analysts, gold is catching a new bid as inflation pressures ramp up, raising concerns that the Federal Reserve will be behind the inflation curve.
“Inflation is here and it’s only going to get worse,” said Bob Haberkorn, senior commodities broker with RJO Futures. “There is a major concern that the Federal Reserve is limited to what it can do to stop inflation from rising. There is a real fear among investors that the Fed will lose control.”
The latest inflation data pointed to broad-based increases in consumer goods. Food was up 5.3% from a year ago – the biggest increase since January 2009. Gasoline prices surged 6.1%, marking the biggest gain since March.