As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / Gold Hits New Highs Amidst Inflation Fears

Gold Hits New Highs Amidst Inflation Fears

Publish Date: 16/11/2021

Gold has been enjoying a strong run on the markets, and it looks to be heading towards a five-month peak. The price of gold was up to $1,868 per ounce at the start of the week which makes it the metal’s largest weekly gain since late spring.

The gold rush has come amidst concern about inflation data in the US and how liquidity could affect the Federal Reserve. As such, strategists have been suggesting that gold could reach $1,950 in the first quarter of 2022.

Gold has long been used as a hedge against the risk of inflation. Recent data has shown a rapid rise in US consumer prices while the biggest banks have been largely against any change in interest rates. As such, gold has become increasingly attractive to investors, especially as higher inflation is predicted for the next few months.

Much will depend on the policies introduced by the Federal Reserve. There is a widespread belief that the USD will strengthen and there will be the gradual introduction of higher interest rates. This could signal a downturn in the price of gold and other metals such as silver which have already witnessed a steadying in value.

Where can the price of gold go from here?

Many stock market analysts suggest that gold is just getting started in its impressive rate of growth. While bullion had just enjoyed its best week since May, it is just 2% away from breaking even on a year-to-date basis. Alongside the aforementioned hedge against inflation, there is also an increased demand in gold for jewellery, and the consumer demand powering this is set to continue for the foreseeable future thanks to upcoming festive seasons in India and China.

What’s most impressive is the way that gold reacted to the Federal Reserve’s decision to taper the pace of its asset purchases last week. Many investors were expecting the price of gold to fall, but there was actually a significant rally in the value of the asset.

All of which highlights how gold is being pegged as a safe investment amidst a period of relative uncertainty. With no real indication of how long the current inflationary pressure will last and concern about the ongoing supply chain crisis, there’s every chance that the demand for gold will continue well into the next quarter.

The inflationary pressures have largely arisen as the US recovers from the pandemic. Treasury Secretary Janet Yellen said that rising prices will continue to be an issue as the authorities try to contain the spread of Covid-19. Last week saw a gain of over 6% in the consumer price index making it the fastest rate of growth in over 30 years.

Measures being considered include the removal of some of the tariffs on Chinese imports that were introduced under President Trump. Such tariffs have raised domestic prices and they are just one further reason why gold is still in the ascendancy. But whether the price of gold will continue to rise remains to be seen.

Read Also
Oil Prices Tumble 10% Then Recover
This week saw oil prices plummeting over 10% to slip under the ...
Mixed Market News as Second Quarter Begins
There was mixed news on the markets as Wall Street began its ...
Markets Edgy Ahead of Critical Fed Meeting
This week will be critically important for investors’ fortunes in 2022 as ...
Apple Stock Suffers its Worst Weekly Decline in Months
Last week saw the share price of Apple having its worst weekly ...
Oil Price Rise Expected to Peak Soon
The price of oil has skyrocketed to a seven-year high as a ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%
Chinese ecommerce giant Alibaba posted its first earnings ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Interactive Brokers
Interactive Brokers
Interactive Brokers Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPG
Close
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site