Gold Price Rises. Its Role as a Reserve Asset Is Growing.

Gold prices were rising on Wednesday as investors snapped up the safe-haven asset amid uncertainty about the looming inflation report and a 30-year Treasury auction that will show how the market is feeling about the ballooning U.S. deficit.

Futures climbed 0.7% to $3,366 an ounce in early trading, putting the precious metal about 4% short of the record high it hit in April.

While geopolitical and macroeconomic uncertainty has led to investors loading up on bullion, central banks have also been snapping up to diversify their reserves and shield against inflation.