2021.11.1709:56:00UTC+00Gold Rises Amid Inflation Threat

Gold prices rose on Wednesday as inflation woes and signs of rising new coronavirus cases in Europe offset a firmer dollar.

Spot gold rose half a percent to $1,860.49 per ounce, while U.S. gold futures were up half a percent at $1,862.65.

Eurozone inflation increased as estimated in October, final data from Eurostat showed earlier today.

Inflation rose to 4.1 percent in October from 3.4 percent in September. The rate came in line with the flash estimate published on October 29. A similar higher rate was last registered in July 2008.

Elsewhere, U.K. consumer inflation surged to 10-year highs, fueling bets of an interest rate hike as early as next month.

Official data showed that U.K. consumer price inflation advanced to 4.2 percent in October from 3.1 percent in September. The rate was forecast to climb to 3.9 percent.

The upward pressure was largely driven by the surge in the cost of housing and transport.

Dutch front-month contract for wholesale gas rose about 5 percent to extend gains from the previous session, adding to concerns around soaring costs across the continent.

St. Louis Fed president James Bullard said on Tuesday that the Fed should "tack in a more hawkish direction" in preparation for longer-term high inflation.

Amid heightened concerns over inflation, markets are waiting to see whether President Joe Biden decides to nominate Fed Chair Jerome Powell for a new term.

Meanwhile, Treasury Secretary Janet Yellen told congressional leaders Tuesday that the federal government would be at risk of default unless lawmakers lift the legal debt ceiling by Dec. 15.

On the Covid-19 front, Slovakia's hospitals are in a critical situation dealing with a surge in coronavirus infections.

Elsewhere, the Austrian government is set to approve measures to limit access to services for unvaccinated people.