Gold extends rally as dollar weakness, inflation jitters lift appeal

 Gold extends rally as dollar weakness, inflation jitters lift appeal

An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.

Akos Stiller | Bloomberg | Getty Images

Gold prices extended gains on Tuesday, hitting their highest level in more than three-and-a-half months, as a weaker U.S. dollar and growing inflationary pressure bolstered the metal’s appeal as an inflation hedge.

Spot gold was up 0.1% at $1,868.27 per ounce by 0314 GMT, after hitting its highest since Jan. 29 at $1,873.41 earlier in the day. U.S. gold futures were steady at $1,868.30.

“Gold ETFs have actually started to pick up again this month, which is positive because the market is reading higher inflation, at least over the short term,” said Stephen Innes, managing partner at SPI Asset Management.

“If the dollar continues to weaken, gold could catch fire, but much of this in Asia is pretty muted. The real key here is how gold is going to…

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