Inflation hot at 13-year high, what will happen to gold?
|US inflation at 5% YoY vs 4.7% expected with core inflation at 3.8% vs 3.5% expected which is the highest rate since February 1992.
The market took it like a champ though as it believes central bankers will look through this temporary spike.
But I think investors will still want to hedge against inflation and what better asset to buy than Gold?
Technically, however, I would like to see more volume which would indicate the presence of buyers and a break above resistance at 1912 / 1915 will likely trigger a new round of upside acceleration to my medium-term target at $1949 / oz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.