US inflation expectations jump to the highest since April 2013
|According to the St. Louis Federal Reserve data, the US inflation expectations, as measured by the 10-year breakeven inflation rate, jumped to 2.41% on Wednesday to hit the highest level since April 2013, strengthening the bullish case for the store of value assets such as gold.
Inflation expectations clocked a low of 0.5% in March 2020, as financial markets crashed on fears of a coronavirus-induced recession and have been rising ever since.
The ascent has been particularly sharp over the past few weeks, courtesy of jumping covid vaccinations in the West and strengthening expectations for aggressive fiscal spending under Joe Biden's presidency.
Even as the US inflation expectations provide strong support to gold prices, the yellow metal stays mildly bid below $1,800.
Read: Gold Price Analysis: XAU/USD gears up for $1,800, Biden’s ‘Joint Congress’ in focus
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