Gold and Silver Price Update – Inflation concerns advancing prices

Gold prices advanced by 0.57 percent to register at USD $ 1463.90 an ounce, as rising inflation concerns continued to increase the precious metal’s attractiveness.

Gold is expected to increase in its price due to an increased buying from Asian countries, since inflation concerns and a lack of alternate investments is driving investors towards the metal. The consumer price index in China increased by 5.2 percent in March from a year ago, which is the fastest increase since 2008. The Bank of Korea has increased its inflation forecast to 3.9 percent in 2011,while Singapore’s economy grew by more than twice the rate which economists predicted in the first quarter of this year. Also, the Dollar Index, which is a six-currency gauge of the dollar’s value, fell by 0.4 percent last week. Gold prices move in opposite direction to the Dollar Index. With all of these signs, and with oil prices on the high and the crisis in Libya far from over, gold is expected to gain increases in price in the coming months.

Silver future benefited from the increased inflation concerns too, increasing in price by 2.51 percent to USD $ 41.245 an ounce.