Skip to Content
Global News Select

Materials, Gold Futures Up After Inflation Data — Materials Roundup

Producers of metals and other raw materials rose after strong inflation data.

Gold futures rose 2% and saw its largest two-day gain since May after the Labor Department reported consumer-price inflation in September rose at the most marked rate in more than a decade.

The materials sector as a whole does not always fare well during times of rising consumer inflation, however, according to Wall Street strategists. On the one hand, higher commodity prices benefit miners. But the knock-on effects of inflation could slow global economic growth, and deplete demand for copper and other industrial metals.

"Food prices and energy prices are not going to ease any time soon," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group. "And that's really set to weigh on the outlook, especially considering you're still having a messy labor market recovery."

 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

October 13, 2021 17:06 ET (21:06 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.