In response to “higher raw-material costs and record-low interest rates,” gold rose for the second day straight and silver rose a staggering 3%.
“U.S. wholesale costs gained 0.7 percent in March, led by surging energy, the government said. Compared with a year earlier, prices climbed 5.8 percent. Before today, gold gained 26 percent in the past year, reaching a record $1,478 an ounce on April 11.
“We are seeing increasing inflationary expectations, and investors are putting on hedges,’ said Matthew Zeman, a strategist at Kingsview Financial in Chicago. ‘Gold is catching a nice bid.'”