Dow Jones plunges, as gold hits one-month high, following rise in US inflation [Video]

Gold surges to 1-month high, as U.S. inflation hits 40-year high

Gold rose to a one month low on Friday, as U.S. inflation continued to increase to record levels.

Data on Friday showed that inflation in the United States rose to 8.6% in May, its highest level in over forty years.

Markets had expected CPI to climb to 8.3%, however figures exceeded expectations.

Several U.S. indices fell on the news, with the Dow Jones dropping by over 700 points on the news.

The S&P 500 was 2.5% down as of writing.

FTSE 100 slips, following rise in UK inflation expectations

The FTSE 100 also fell during today’s session, as data showed that UK inflation expectations also rose.

Following a survey from the Bank of England, expectations for inflation over the year rose to 4.6%.

Despite multiple rate hikes, British consumers continue to expect prices to trend upwards in upcoming months.

 A rise in the cost of energy is one of the main factors in the increased expectations.

The BOE’s Chief economist Hue Pill stated that, “I personally think there is more that needs to be done in this transition from what has been a very supportive monetary policy for the economy really going back to the financial crisis, through the fallout from Brexit and the pandemic”.

London’s FTSE closed the week 2.12% lower.