BNY’s Bob Savage points out that Gold is gaining alongside Steel as Brent Oil surges to multi‑year highs and Middle East tensions intensify. Elevated energy costs are feeding directly into Euro area and French inflation, while producer prices in several economies show renewed momentum. This backdrop reinforces Gold’s role as a hedge against supply‑driven inflation and geopolitical risk.

Safe haven appeal in energy-led inflation

"It is also noteworthy that gold and steel are higher within commodities."

"Overall, the data suggest renewed inflationary momentum in the euro area, with energy costs playing a dominant role despite some easing in underlying price pressures."

"The pickup in headline inflation was primarily driven by a sharp acceleration in energy prices, which surged by 14.2% y/y due to higher petroleum product costs."

"Upstream pressures were more pronounced, with intermediate goods inflation accelerating to 9.1% and mining prices surging by 33.0% y/y, reflecting strong increases in metal ores."

"Export price gains were driven by strong increases in gold, coal and fertilizers, reflecting safe haven demand and supply disruptions, although falls in iron ore and gas prices offset these gains."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)