LONG POSITIONGold Price Forecast: XAU/USD Breakout Holds Through CPI - FOMC on Deck
Gold prices put in a major breakout last month, and so far buyers have been able to hold the bullish trend.
At the source of this move was the presumption that the Fed will be sitting on low rates for longer, but as more signs of inflation begin to show might the Fed be compelled to moderate their stance?
GOLD AS AN INFLATION HEDGE?
Gold is often called an inflation hedge and this may be partially correct. Rate hikes, however, aren’t necessarily a positive for Gold because it increases the opportunity cost of holding the precious metal. The higher rates go, the greater the opportunity cost of holding a non-yielding asset.
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