Gold prices rise to $3000 per ounce due to inflation and weakening dollar

Washington/London – Gold prices continue to rise due to the rising inflation and a weakening dollar. Analysts claimed that if this trend continues in the economy, the Gold prices could rise to as much as $3000 an ounce in the next few months. The gold rate jumped by nearly 1.5% in the US markets on Friday, reaching a rate of $1,812 per ounce (28.34 Grams).

The last few months have seen a sharp rise in international prices of fuel, coal and aluminium. At the same time, restrictions imposed by the COVID pandemic have created major disruptions in the global supply chain. This has increased production costs in most countries, triggering high inflation. The repercussions of all this are being felt in the gold market, with prices slowly rising.

This week, gold prices have increased by 2.5%. In transactions in the United States for December, the Gold rate was reported at $1,812 an ounce (28.34 grams). ‘Rising inflation and fears of a weakening dollar are driving up gold prices,’ said analyst Jim Wyckoff. Other analysts have also drawn attention to the issue of rising inflation and have said that this is the main reason for the rise in demand for gold.

David Garofalo, head of Gold Royalty Corp. in Canada, has predicted that the Gold rates could rise to the level of $3,000 as a measure to counter the rising inflation. He also claimed that this would not take years but will happen in a matter of months. His colleague Rob McEwen has expressed a possibility that Gold rates could reach the level of $5,000 per ounce in the long term.

McEwen noted that citizens are turning to traditional methods due to factors such as international credit policy, increased debt burden due to the COVID pandemic and problems in the supply chain. At the same time, he said that the US dollar and other major world currencies are depreciating. McEwen also claimed that gold could provide better security than cryptocurrency in an environment of rising inflation.