Bark Melek, head of commodity strategy at TD Securities, noted that because of rising inflation pressures, the 10-year breakeven rate rates higher, which is also taking its toll on the U.S.
While the breakout is good news for frustrated gold investors, Robin Bhar, an independent market analyst, said that he would like to see the precious metal hold these gains through Friday.
“I like what I am seeing in gold,” he said.
Bill Baruch, president of Blue Line Futures, said that the move through $1,800 has repaired the technical damage inflicted when prices broke below $1,750.
While inflation fears are propelling gold prices higher, some analysts note that improving economic data will continue to be a headwind for the precious metal.
“The Fed will want to run the economy hot and that will change when it changes.
Although Baruch is optimistic on gold in the near term, he said that Federal Reserve monetary policy remains a significant risk.
“If you get a strong jobs report, then you might start hearing hawkish comments from some Fed members,” he said.