* Gold risks to the upside in the near term – Analyst
* Dollar falls as riskier currencies rise
* Silver rose about 3% to reach its highest level in one month (Updates prices)
(Reuters) – Gold prices jumped on Wednesday, after the US dollar weakened, as concerns about rising inflation and supply chain issues boosted the metal’s safe-haven appeal.
Spot gold was up 0.9% at $1,785.25 an ounce by 14:00 ET (1800 GMT). US gold futures for December were up 0.8% at $1,784.90 an ounce.
The dollar fell, making gold more attractive to foreign currency holders.
“There is global concern about what is happening with the supply crunch and lack of action by the Federal Reserve. The Fed appears to be behind the ball in inflation,” said Bob Haberkorn, chief market analyst at RJO Futures.
“With supply chain problems and inflation, how will stocks continue to hit new highs?” “There is a journey to safety in gold that will continue for the next couple of months,” said Haberkorn.
Federal Reserve Governor Christopher Waller said on Tuesday that if inflation continues to rise at its current pace in the next few months, policymakers may need to adopt a “more aggressive policy response” next year.
Bullion is often seen as an inflation hedge, although lower stimulus and higher interest rates drive up government bond yields, raising the opportunity cost of holding non-yielding bullion.
Also boosting gold, US 10-year Treasury yields fell after hitting a five-month high earlier in the session.
Gold will see a range shift once it breaks the key $1,800 an ounce level, said StoneX analyst Rona O’Connell, adding that the risk is to the upside ahead of India’s Diwali festival and with steady demand in China.
Elsewhere, platinum rose 1% to $1,050.50 an ounce. And palladium fell 1.2 percent to 2072.71 dollars.
Silver rose 2.9% to $24.34 an ounce, after hitting its highest level in more than a month. (Reporting by Amy Karen Daniel and Arundhati Sarkar in Bengaluru; Editing by Ramakrishnan M.)