GOLD AND SILVER SCORE BIG

GOLD PRICES climbed above the key $1 800 (about R26 165) an ounce level on Friday as a weaker dollar and worries about rising inflation bolstered demand for the safe-haven asset, keeping the metal on track to post its best week since May.

Spot gold price jumped 1.4 percent to $1 807.57 an ounce by 14.07pm. Prices were up more than 2 percent for the week.

US gold futures for December delivery rose 1.6 percent to $1 810.20 an ounce.

The dollar index recorded a second week of declines, lending support to gold by making it more attractive for buyers holding other currencies.

“Inflation is the one thing that everybody is talking about today,” said Daniel Pavilonis, senior market strategist at RJO Futures.

“The perception is that the Federal Reserve is behind the curve, and the metals market is looking at that as the Fed (US Federal Reserve) is not going to do enough to slow inflation... that is where gold is going to find its value.”

Some investors view gold as a hedge against higher inflation that could follow stimulus measures.

Atlanta US Fed president Raphael Bostic said he expected high inflation to persist into 2022 and the central bank to raise interest rates by the end of next year.

Elsewhere, euro zone inflation expectations hit their highest levels in years, putting additional pressure on the European Central Bank and its insistence on maintaining crisis-era stimulus.

Meanwhile, silver gained 2.3 percent at $24.70 an ounce after hitting a one-and-a-half month high earlier in the session. Platinum rose 1.9 percent to $1 068.58, for its third consecutive weekly rise. Palladium rose 0.3 percent to $2 025.18 an ounce.

“In 2022, we expect platinum to emerge from its current fragility, driven by the chip shortage,” UBS analysts said in a note. I