Inflation hit another 13-year high, expect $2k gold price by year-end if things don't change

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Gold last traded at $1,812 an ounce. Silver at $25.65 an ounce.

NEWS SUMMARY: Precious metal prices traded steady Friday despite a firmer dollar. U.S. stocks rose slightly as the latest retail sales data topped economists' expectations.

Inflation hit another 13-year high, expect $2k gold price by year-end if things don't change -KITCO

"The U.S. Consumer Price Index (CPI) rose 0.9% in June, after a 0.6% rise in May. Year-on-year, headline inflation is now at 5.4%.

Will Rhind, CEO of GraniteShares, said that gold, being an inflation hedge, can continue to rise if inflation does not cool off later this year.

'I think if we start to see inflation numbers high or elevated after the summer, when everybody gets back from vacations, September time, I think we can easily see [$2,000 gold] before the end of the year,' Rhind told David Lin, anchor for Kitco News.

On what constitutes an inflation hedge, Rhind said that an asset needs to outperform others during periods of high inflation. By that definition, equities don't qualify as an inflation hedge, he said.

'Right now, equities are rallying because the market doesn't believe there's an inflation problem. What happens to equities in an inflationary environment is that there comes a point where companies cannot pass on those inflationary costs,' he said."